Beijing, manufacturing sector contracts in January,
Beijing ( AsiaNews) - China's manufacturing sector has contracted in the month of January, according to the latest reading. The PMI (Purchasing Managers Index) fell to 49.6 this month from 50.5 in December.
A value above 50 shows expansion; a value below 50 instead shows contraction. The Flash PMI is calculated by individuals according to data collected from industries. The official PMI will be released in February.
According to experts, the decrease is due to the lowering of domestic demand and the overall situation in China. On its own a contraction of the PMI does not mean that industrial production has decreased . In fact, in December it grew by 9.7% in a year. But there are other key factors: labour costs, which grew, and the halt on bank loans, imposed by the government to reduce inflation .
Just a few days ago the Bureau of
Statistics published
the results for the last quarter of 2013, in which there is a growth in GDP
(gross domestic product) of 7.7%, slightly lower than the previous quarter (7.8).
The
burning issue that the government now faces is how to cover regional debts, which
since 2010 have risen by 67%, reaching 17.9 trillion yuan (over 2.18 trillion euro).
To
maintain China's growth at least 7.8%, the government has opened a free trade
zone in Shanghai, to facilitate foreign investment also in areas hitherto monopolized
(such as telecommunications). This
area, however, is not yet up and running and many investors complain that the
rules are still not clear.
Nevertheless,
Xinhua today issued a statement announcing government approval for the opening
of an additional 12 free trade zones in various parts of China, including
Guangdong , to exploit its relations with and vicinity to the south and Hong
Kong.
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01/02/2021 16:46
