Differing survey results released on Chinese manufacturing, industry growth may not have slowed as much as expected

According to independent data released shortly after official figures, Chinese factory production did not slow as much as was thought this quarter.

According to official figures, the third quarter of this year saw 6.8% growth, a 0.1% drop from growth in the first two quarters.

This was in line with an expected slowdown as the country attempts to get a handle on corporate debt and curb pollution.

However, while these figures tend to focus on larger companies, the Caixin Purchasing Managers Index, which can often better indicate the state of small and medium sized companies, registered at 51.0 for October, with anything above 50 representing growth from the previous period.

However the official PMI, while still above 50, dropped by 0.2 from September, which had been the strongest in two years.

This was the weakest reading in three months.

See also: 

China's industrial sector profits increase by over 27% 

One billionaire created every two days in Asia 

Business Review Asia - November issue now live!

Julian Evans-Pritchard, Capital Economics China economist, started in the South China Morning Post that the Caixin index is more heavily relied upon since it “has recently done a better job capturing cyclical tends in economic activity.”

According to analyst Zhong Zhengsheng quoted in the SCMP, “The stringent production curbs imposed by the government to reduce pollution and relatively low inventory levels have added cost pressures on companies in midstream and downstream industries, which would have a negative impact on production in the coming months.”

Throughout October, rises were reported in both new business and new export sales. However manufacturing jobs have been cut and production expansion did not increase. The month also saw a significant fall in the price of raw materials.

Overall, the Caixin Survey indicated that demand for manufactured goods from China was decreasing both nationally and overseas, and export growth was at its weakest since December.


Featured Articles

Twitter timeline – how Musk pulled off a hostile takeover

Elon Musk strikes deal to buy Twitter for US$44bn following four months of cryptic tweets, secret meetings and buying of shares – here’s the timeline

Top 10 Asia restaurants, from Tokyo’s Den to Bangkok’s Sorn

From Tokyo to Bangkok, with cuisines spanning Cantonese, Thai and German, we highlight Asia’s top 10 places to eat, as per Asia’s 50 Best Restaurants

Microsoft: what Asia leaders need to know about hybrid work

Microsoft’s 2022 Work Trend Index guides Asia leaders to navigating a hybrid future – from making the office worth the commute to rebuilding social capital

Meet the company: EV Nio to list in Hong Kong, enter Europe

Leadership & Strategy

12 Tech trends to watch closely in 2022, from CB Insights


Why Deloitte Australia’s HR technology is winning awards

Human Capital