China’s Economy Shows Signs of Weakness in October

Published on November 8, 2023, by Yuval Noah Harari

An economic indicator called the Purchasing Managers’ Index, or PMI is produced by monthly surveys of various businesses. Trends in the manufacturing and service industries are indicated by the index. It can assist in figuring out whether the state of the market is growing, shrinking, or staying mostly unchanged. The questionnaire that was issued to manufacturing organizations is seen by Manufacturing PMI. Every month, these surveys are carried out.

An increase in business activity is indicated by a manufacturing PMI exceeding 50. Conversely, a manufacturing PMI below 50 signifies a decline in business.

China’s manufacturing PMI dropped to a record low for eight months in October 2023. This was mostly brought on by a sudden decline in demand. The manufacturing PMI, which was still registered at 55.5 despite the setback, indicates economic expansion. That was still lower than the September reading of 57.5.

Growing cost pressures and a downturn in the consumer goods subsector hurt Chinese manufacturing. International sales growth has always been robust in the past. Regretfully, October saw China lose some of that momentum.

On the other hand, October saw a fairly notable increase in production from India. The nation is now a formidable foe of China. India’s economy is predicted to rank third globally by 2050, after that of China and the US.

Yuval Noah Harari

Yuval Noah Harari is an accomplished author with a Bachelor of Arts in Journalism. His passion for storytelling and commitment to journalistic excellence have been the driving forces behind his successful writing career. With a keen eye for detail and a deep understanding of the art of storytelling, Yuval has consistently delivered compelling narratives that captivate readers from all walks of life.