Post-COVID 19 economy recovering as China’s output grows

The Caixin/Markit SME index reaches its highest level since 2011. The recovery is driven by domestic consumption and exports. Further improvement is expected by the end of the year. However, the labour market remains weak.

Beijing (AsiaNews) – The Caixin/Markit manufacturing purchasing managers’ index (PMI), which measures the activity of small and medium-sized enterprises, rose from 52.8 points in July to 53.1 in August.

This is the highest level since 2011, a sign of a significant improvement in manfucturing output after the contraction caused by the coronavirus pandemic in the first quarter of the year.

On Monday, the official manufacturing PMI that focuses on larger state-owned firms fell slightly to 51.0 in August, but was still positive. anything above 50 is a sign of economic growth.

With last month's results, manufacturing output increased for a fourth month in a row. Higher domestic consumption and demand from abroad, favoured by a slowdown in the COVID-19 pandemic, contributed to China’s economic recovery.

Further improvement is expected in the economy between now and the end of the year, also thanks to the growth in services.

However, the increase in output has not yet translated into more jobs. The labour market remains weak.

According to China’S National Bureau of Statistics, the manufacturing employment index is in negative for the eighth consecutive month (49.4 in August, 49.3 in July).

Over the same period, the index of the other sectors saw a slight progress, from 48.1 to 48.3 points.