Factory Slow Down

Published on Author kavanaght16

As we have discussed at length in this class, the manufacturing sector has long played a critical roll in China. Given manufacturing’s importance, the sector’s weak performance in the start of 2014 has heightened some economists concerns over the growth of China. The purchasing managing index climbed slightly from 50.2 in February to 50.3 suggesting economic growth. However, this increase should have been higher as the increase is typically following the Chinese New Year celebrations in February. Despite the grim outlook, Chinese officials remain optimistic. Wang Jan senior economist at China Centre for International Economic Exchanges, pointed to the quickening rate of investment and fiscal spending as cause for hope. However, he did say that “The top priority is stabilizing growth. Policy measures have been prepared and it’s just a matter of implementation”. It seems it is only a matter of time before China utilizes fiscal and monetary policy to revitalize their slowing economy. Only time will tell the form, and success, of China’s corrective measures.


Further reading:http://www.reuters.com/article/2014/04/01/us-china-economy-pmi-idUSBREA3003220140401

One Response to Factory Slow Down

  1. Based on past year’s, it would seem logical that spending would increase after the New Years, considering that cash is one of the most common gifts. Why people are not spending is an important question worthy of further research.