Despite a continued expansion in Chinese factories and mines' outputs during the month of April, the country faced a slowdown in the growth rate in comparison to previous months. The National Bureau of Statistics released information on the purchasing managers' index (an indicator of the economic performance from the manufacturing sector), showing that China's PMI was 51.2, suffering a decrease from a five-year high of 51.8. For reference, a number above 50 illustrates growth in the sector.
Data on the country's first quarter of the year, together with information on trade statistics, have shown an increase in China's GDP growth rate, which led to some "steady accumulation of positive factors", according to Zhao Qinghe, an analyst for the National Bureau of Statistics. However, despite the positive outlook, the Chinese economy is set to face a surge in "downside pressures" and a "shallow slowdown through the course of this year". With the help of additional data, it has been brought to the attention of the people that "China's manufacturing activity might have retreated from its peak".
Source:
http://www.bbc.com/news/business-39762099
2 comments:
It will be interesting to see how long China can maintain its growth, so many people are so intimidated by China but it's hard to imagine they figured out the perfect system. I wonder what the long term effects of the TPP are going to be since the withdrawal.
Actually I do not think China can pick up the growth rate as high as several years ago. I think the period of rapid economic growth brought by labor transition has passed. Chiese economy now is facing a big challenge. I'm looking forward to seeing what will happen in future. Even though I do not think China can get back to the extremely quick growth period, I still hope the speed of going to a relatively low grow rate would be not that steep.
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