Industry in China faces challenges with a contraction in October after a brief period of recovery in September. The industrial sector purchasing management index, a fundamental indicator of industrial production, stood at 49,5 in October, revealing a downward trend, according to official data released this Tuesday by the National Bureau of Statistics (NBS) . This score is below the critical threshold of 50 points, which separates expansion from contraction.
A Turnaround in China's Prosperity
In September, there was a sign of relief when the indicator reached 50,2, after five consecutive months of decline. However, October brought an unfavorable turn for the Chinese, with the prosperity of the industrial sector experiencing a decline again. This uncertain scenario is a reflection of the challenges China faces, including fragile domestic consumption and a crisis in the real estate sector that is impacting economic growth.
The Search for Economic Stimuli
In response to these difficulties, Beijing recently announced a plan to issue one trillion yuan (about 137 billion dollars or 685 billion reais) in sovereign bonds. This measure aims to boost infrastructure spending and is part of a series of economic stimuli implemented by the Chinese government. China's economy, despite the challenges, grew 4,9% in the third quarter, exceeding expectations. However, authorities have set a target of 5% for 2023, which represents one of the lowest growth rates in recent decades.
China, as the world's second largest economy, plays a crucial role in the global economy. Your industry's performance is closely watched by analysts and investors around the world. The recovery of industrial activity in the country will play a key role in determining the global economic trajectory in the coming months. China, with its influence on industry and financial markets, will continue to be a focal point of attention and speculation.