China, the manufacturing sector declines in February

28/02/2018

The manufacturing sector in China slows down in February. Numbers, in any case, growing for a market that is still developing, but that in the last month has, in fact, lost some growth point. The National Bureau of Statistics, in fact, has made it known that the production/purchase index is equal to 50.3, one point less than in January (51.3).

According to the statesman of Nbs, Zhao Qinghe, there is no need to worry. This fall can be seen as a normal fluctuation, as the index tends to fall in the month of the Spring Festival holidays. Furthermore, a reading above 50 indicates an expansion of the market.

The sub-indices for production and new orders follow this pattern, falling respectively to 50.7 and 51, while, those concerning raw material stocks, remained below 50 points. Despite this slowdown, however, the PMI of the manufacturing sector was above the threshold of 50 points for 19 months, thanks above all to the performance of emerging industries.

The technology sector was not affected by the inflection during the Spring Festival. This branch of the Chinese economy, on the contrary, has seen a rise, as shown by the high-tech PMI: 54 in February, against 53.2 in the previous month. Excellent numbers also for the production of equipment, whose PMI rises from the 50 of January to 51.

As for the other sectors, a milder expansion for the services sector is recorded, which in China accounts for more than half of GDP, with its index down from 54.4 to 53.8. Unlike the others, retail, catering, railways, aviation, telecommunications, internet and tourism, as expected, have seen an increase in consumption during the Spring Festival, with all business activity indices above 56 points.

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