Factory Growth Slows in China

Published on Author meleski14

Urbanization has been China’s push for a decade. However, the factor sector in China grew at a slower pace in November than usual. Export orders were shrinking, which could greatly affect the Chinese economy by causing it to slow overall.

This is still an optimistic view for the economy because they Purchasing Managers’ Index remained above the 50 point line, meaning that the government believes they reached a more stable growth after affecting many changes.

Now that the economy is stable, the government wants to focus on reforms. However, reforms can cause a lot of instability, but the Chinese government believes that China is ready for this. Beijing reported that a slower growth rate is acceptable because they are trying to make social and economic changes that would show benefits to their economy later on.



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2 Responses to Factory Growth Slows in China

  1. The recent Chinese PMIs have been slightly above 50, which is the line that divides expansion from contraction, over the past few months. This sluggish indication of growth is welcome relative to the previous quarters where the PMI had been indicating a slight contraction. Factory orders are significantly dependent on global demand, and when one briefly examines a chart of the Chinese PMI by Markit it is rather evident that global demand has been sluggish, since China’s PMI readings—all subcomponents—oscillate around 50 implying marginal, at best, expansion in the sector over the past year or two.


  2. Although it is sluggish, any growth should be celebrated. Hopefully the factory growth can continue and start trickling income down to the lower working classes.