Insufficient Demand restricts China's manufacturing recovery

China National Bureau of Statistics Service Industry Survey Center and China Federation of Logistics and Purchasing announced on May 31 that the leading indicator of the macroeconomy, the official manufacturing purchasing managers index (PMI) in May, fell slightly to 50.6%, the second consecutive monthly decline, but the non-manufacturing business activity index was 53.6%, an increase of 0.4 percentage points from the previous month, and the construction industry and service industry index rebounded significantly. Foreign media said that after the epidemic, the Chinese economy is working hard to get back on track. Due to the global economic downturn, it is difficult for the manufacturing industry to recover. However, China's policy of expanding domestic demand is exerting its effects, and consumption has been further repaired and investment demand released.


Zhao Qinghe, the senior statistician of the Service Industry Survey Center of the National Bureau of Statistics, said that 81.2% of the enterprises surveyed by manufacturing purchasing managers in May had reached more than 80% of the normal production level, but the new export order index and import index were at historically low levels, indicating that "the current global epidemic situation and the world economic situation are still grim and complex, and the demand in foreign markets continues to shrink"

Agence France-Presse said on May 31 that analysts at Nomura Securities in Japan said in their latest report that the economic growth of major European and American economies fell by about 15% year-on-year in the second quarter, and China’s exports also faced a severe situation. Although China's exports of medical supplies have increased recently, it is not possible to offset external challenges. As many countries begin to produce related products themselves, China's exports of medical supplies will also be "unsustainable.

However, Reuters said that China's official non-manufacturing business activity index rose to 53.6% in May, the third consecutive month of rebound. Among them, the construction industry has accelerated and the number of new construction contracts signed by construction companies continues to rise. The service industry also recovered steadily. Expansion of household consumption policies and measures has accelerated, and the “May 1” holiday consumption effect has been superimposed, making the consumer market continue to pick up and market activity has increased.

Reuters said that China's active fiscal policy this year will be more active and promising, expand local financial resources, ease corporate pressure, and thus protect employment, people's livelihood and market players.