PMI indicator (Purchasing Managers’ Index), relating to the processing industry of China, has shown the lowest value in February. We recall that this indicator is formed on the basis of surveys of purchasing managers in the manufacturing sector. Over the last month, the value of this indicator has amounted to 50 points. These data are provided by the National Bureau of Statistics.
The PMI index has dropped not only in the industrial sector, but also in the service sector, as well as in construction. We recall that in January its value was 54 points, in February – 29.5 p, which is the lowest indicator in the recorded history.
If the indicator falls below 50 points, it means a decline in the industrial production activity. If it rises higher, then the sector is gaining momentum.
Trading Economics has interviewed some experts and they predicted a decrease in the industrial production index to 46 points, in the services sector – to 47 points.
The Activity Index for both sectors has dropped to 29 points. In January, it was equal to 53 points.
Such indicators signal a large decline in all sectors of the Chinese economy. Coronavirus has had a negative effect on all areas. Because of it, it is necessary to close production and restrict the movement of citizens. Now China has suffered a severe economic downturn.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group