Guiyang Xianfeng Machine Tool Co., Ltd.
Guiyang Xianfeng Machine Tool Co., Ltd.
Guiyang Xianfeng Machine Tool Co., Ltd.
Check category

China's manufacturing industry has experienced the most significant slowdown in more than six years

  • Categories:Industry news
  • Author:
  • Origin:
  • Time of issue:2019-07-10 10:14
  • Views:

(Summary description)In contrast, manufacturing, the ex-factory price of the product hit the biggest drop since January.

China's manufacturing industry has experienced the most significant slowdown in more than six years

(Summary description)In contrast, manufacturing, the ex-factory price of the product hit the biggest drop since January.

  • Categories:Industry news
  • Author:
  • Origin:
  • Time of issue:2019-07-10 10:14
  • Views:
Information

According to the latest survey data in August, China's manufacturing industry experienced the most significant slowdown in more than six years. The total volume of new business and new export orders both accelerated faster than in July, resulting in the largest contraction rate since November 2011. Production demand declined, and companies reduced their purchases accordingly. The number of purchases recorded the most significant reduction since March 2009. Weak customer demand led to a backlog of finished goods inventories for the first time in six months. At the same time, the weakening of demand also caused a sharp drop in input costs and output prices during the month. As a comprehensive indicator summarizing the operating conditions of the manufacturing economy with a single value, the Caixin China General Manufacturing Purchasing Managers' Index (PMI?) in August (seasonally adjusted) recorded 47.3, slightly higher than the previously released initial value. (47.1), but lower than July (47.8), and the sixth consecutive month is below the 50.0 threshold, and the manufacturing slowdown this month is the most significant since March 2009.

According to August data, the total volume of new manufacturing in China's manufacturing industry contracted for the second consecutive month, and the most significant contraction rate in 17 months. The surveyed companies generally indicated that the deterioration of market conditions during the month led to a weakening of customer demand at home and abroad. At the same time, the volume of new export business also recorded the largest decline in more than two years. In view of weaker customer demand, manufacturers contracted production in August, and this month's output contraction rate hit a record high since November 2011. In August, production demand fell, causing manufacturers to further reduce purchases, and the reduction in purchases increased from July, the most significant since March 2009. As a result, the purchase of inventories fell during the month, but the decline was still small. The finished goods inventory was reversed, with a slight increase in August, and many manufacturers indicated that sales fell, resulting in a backlog of finished goods inventory.

In August, China's manufacturing industry continued to work for 22 consecutive months, and the employment contraction rate exceeded July, which was close to the 76-month record set in June. The backlog of work in the month rose for the fourth consecutive month, but the magnitude was slight. In August, the overall input cost of China's manufacturing industry declined further. Many respondents indicated that the reasons were related to the decline in raw material costs. Although the price decline of input products has slowed down compared with that in July, the overall price is still considerable. As with the trend of cost burden, the ex-factory price of manufactured products also declined in August, and the current trend of price cuts has continued for 13 months. According to the survey, the respondents passed the price cut to reduce the input cost to the customer, and also to attract new business.

In August, Caixin China's comprehensive PMI data (including manufacturing and service industries) showed that China's total economic activity slowed down, and the Caixin Composite Output Index fell to 48.8 from 50.2 in July, below the 50.0 threshold. Although the shrinkage rate is still small, it has hit the most significant output shrinkage since February 2009. In August, the overall output reappeared, mainly due to the accelerated contraction of manufacturing production, and the manufacturing output in the month hit the biggest decline in 45 months. At the same time, the growth rate of business activities in the service industry has slowed down, and the comprehensive index has also been dragged down. The Caixin China General Service Business Activity Index recorded 51.5 in August, lower than July (53.8), setting a record for the lowest growth rate of the current 13-month expansion period.

In August, the total number of new orders in the service industry also showed signs of slowing growth. The growth rate of new business this month was the lowest in more than a year. The survey shows that the recent market conditions are relatively weak, affecting customer demand. At the same time, manufacturing orders continued to contract this month, and contraction rates intensified, the most significant in 17 months. The combination of the two, the total amount of new business has declined for the first time since April 2014, but the decline is slight. In August, the growth of business activities and new orders slowed down, causing service companies to reduce employment growth. During the current two-year employment expansion period, this month's growth rate was the weakest, only minor. Manufacturing employment continued to shrink, and the contraction rate slightly increased from last month. As a result, the scale of comprehensive employment declined slightly for the third consecutive month.

In August, the backlog of services continued to decline for the seventh consecutive month, but the overall decline was moderate. According to the respondents, the growth rate of new business slowed down and the company was able to clear the backlog business. The backlog of manufacturing has risen, but the overall backlog remains small. The combination of the two, the backlog of work has generally declined for the fifth consecutive month, but the magnitude is only minor. In August, price trends in manufacturing and services continued to perform differently. The input costs of service companies continue to rise slightly, while the manufacturing input costs have dropped significantly. The significant decline in the manufacturing cost burden has also led to a continuous decline in the total input cost for the twelfth month, with a moderate decline. In August, service companies raised their price slightly for the second consecutive month. In contrast, manufacturing, the ex-factory price of the product hit the biggest drop since January.

Scan the QR code to read on your phone

底部导航

Time of issue:2019-04-04 00:00:00

Contact

Office Telephone: 0854-63280136328061

Sales Telephone:0854-63280406328083

Sales Mailbox:xiaoshouchuxf001@163.com

After-sales service telephone:0854-6328020

Copyright © 2019 www.gzhdht.cn All Rights Reserved    Guiyang Xanfeng Machine Tool Co., Ltd.  黔ICP备:15010113号   Powered by www.300.cn