Caixin just released its official Chinese Manufacturing PMI numbers for September. Caixin PMI is a well-respected economic indicator monitored globally by financial institutions. Caixin’s China Manufacturing PMI recorded 48.1 for last month, the lowest point in five months. Mainly affected by the rebound of Covid and its related government control measures, China’s manufacturing production and demand weakened in September and the industry’s prosperity continued to decline in the contraction range. The numbers dropped on both supply and demand sides. The surveyed companies reported that the Covid prevention controls have restricted production arrangements and supply chains. In particular, travel and business restrictions have led to setbacks in demand. Among the three major manufacturing categories of products, the output of the investment category declined the most, while the sales in the consumer goods category declined the most. Demand for Chinese-manufactured products in overseas markets has declined at an accelerating rate. The manufacturing employment index is falling into contractionary territory in September. Considering the decline in costs and sluggish demand, companies have generally cut prices, thus driving the factory price index to the newest low since 2016. The overall performance of the supply chain remains poor. In September, the manufacturing purchasing volume index and the raw material inventory index continued to decline below the line of prosperity and decline. At present, the main contradiction in economic operation lies in insufficient employment, sluggish demand, and unstable expectations.
Source: Caixin, September 30, 2022