China's manufacturing industry business confidence index in January improved by 0.2 points from last month, but remained below 50, the benchmark used to judge economic conditions, for the fourth consecutive month. The main reason for this is the continued stagnation in domestic demand due to the prolonged slump in the real estate market.
This month's Manufacturing PMI (Purchasing Managers' Business Confidence Index), a survey of 3,200 manufacturing companies by China's National Bureau of Statistics, was 49.2.
Although it improved by 0.2 points from last month, it remained below 50, which is a milestone for determining the health of the economy, for four consecutive months.
This is mainly due to the continued stagnation in domestic demand due to the prolonged slump in the real estate market and the severe employment situation.
By company size, the ratio
is 50.4 for large companies
, 48.9 for medium-sized companies,
and 47.2
for small companies, and the situation continues to fall below the milestone of 50 for small and medium-sized companies.
On the other hand, the business confidence index for non-manufacturing industries such as the service industry improved by 0.3 points from last month to 50.7.
In China, on the 29th, a Hong Kong court issued a liquidation order to the real estate giant Evergrande Group, and there are concerns about its impact, and it is expected that companies will take a more cautious view of the economy.