WHAT IS HAPPENING IN CHINA'S MANUFACTURING INDUSTRY?
It is obvious for us that China has made quality productions with cheap labor. However, it is a fact that almost all of the world has relied on China for production and raw material. Although it is an undeniable fact that there is a global crisis, even the notables of the sector can be seen falling back. In this regard, China’s decline in manufacturing may give new players an opportunity.
According to the Caixin Purchasing Managers Index, activities in the country’s manufacturing sector seem to have dropped from 50.8% in April to 50.2% in March. Although the manufacturing index fell compared to March, the purchasing rate of over 50% is still pointing to the growth of the index by managers.
According to this data, April is observed to be the second month in a row when the operating conditions in the country have improved. This improvement is connected to a modicum of increased production and new business activities. Seeing that, the buying activities have not changed during the month and demand conditions have been weakened, new players may benefit from making some attempts. As of April, the sales index fell mainly due to the declining demand from abroad. The data also showed that the input costs and production costs recorded only slight increases.
The country’s business confidence index recorded its highest performance for almost a year. Meanwhile, according to the data of the Chinese National Bureau of Statistics (NBS), April purchasing index for the country’s manufacturing sector is 50.1%, while in March this rate has fallen from 50.5%.