The factory work expanded in china for the October month
The pace of the Chinese factory activity got expanded in just four months during October that got limited by the strong demand. The power shortages have increased the costs that weigh on production as released by the business survey that was released on Monday. The purchasing managers’ index rose to 50.6 in October at its highest level since the June period. The economists of the Reuter poll expected the index to remain unchanged from September at 50.0. However, the 50 mark does not stop the economy to grow every month.
The economy of China is slowing down after the impressive bounce back from the pandemic situation that slowed the progress. The industry was hit badly by the Covid 19 outbreaks and has seen a downfall in the manufacturing sector where the costs, production bottlenecks and other things were affected very much. The supply of power was less due to the shortage of coal, strong industry demands and tough emissions standards that has led to a control on the electricity usage that has hurt the factory output.
The production got decreased for the third time monthly in a row, at a much faster rate than from September. As per a survey, it was noted that the factory activities of china got decreased more than expected in October month and it’s also going to decrease in November too. The foreign demands have also been slowed down as the pandemic got raged in other nations. The manufacturing sector however is recovered in October but the pressure of the downfall of the economic growth is continuing, a statement released by senior economists at Caixin insight group.
The pressure of fulfilling the demands has become the primary factor that has affected the economic situation in china. The lack of raw materials, fluctuating commodity prices, electricity supply issues have affected a lot the manufacturer and supply chains. The prices of goods and services rose at a fast pace and the factories have cut jobs in September month.
On Wednesday, the China’s cabinet announced that the government will avoid some taxes to manufacturers for 3 months that starts from November month. The growth of China will slow down to 5.5% in 2022 from an 8.2 % growth in 2021, as per a poll.