CCTV News:The China Federation of Logistics and Purchasing and the Service Industry Research Center of the National Bureau of Statistics released the purchasing managers’ index of China manufacturing industry in March today (March 31st). Affected by short-term factors, such as the spread of epidemic in many places in China and geopolitical conflicts, the pressure of supply shock, demand contraction and expected weakening in China’s economy has increased, and the overall economic growth rate has been adjusted back, but the basic raw materials industry has rebounded, which has a certain stabilizing effect on the economy.
In March, the purchasing managers’ index of China’s manufacturing industry was 49.5%, down 0.7 percentage points from the previous month, and fell back to the contraction range below 50%.
Affected by short-term factors such as the multi-point spread of domestic epidemic and the persistent international geopolitical conflicts, the operation of China’s manufacturing supply chain is blocked, which leads to an increase in supply shock pressure. From the perspective of industries, the production indexes of equipment manufacturing, high-tech manufacturing and consumer goods industries have dropped significantly compared with last month. From the demand point of view, the new manufacturing order index and the new export order index decreased by 1.9 and 1.8 percentage points from last month, which were 48.8% and 47.2% respectively. Among them, the market demand of equipment manufacturing, high-tech manufacturing and consumer goods industries has shrunk obviously.
In addition, geopolitical conflicts have led to fluctuations in the international commodity market, and the prices of raw materials related to China’s manufacturing industry have also risen rapidly. The purchase price index in March rose by 6.1 percentage points from the previous month to a high of 66.1%.
Cai Jin, Vice President of China Federation of Logistics and Purchasing:In March, the purchasing managers’ index did fall to a certain extent, and the short-term factors dominated the decline, mainly due to the epidemic situation distributed in many places across the country. At present, the purchasing managers’ index is at a level of 49.5%. Although it has dropped, it still reflects that China’s economy is relatively resistant to pressure.
Despite the pressure of high raw material prices, the production and operation activities of the basic raw material industry have remained steady and increased, which has supported the economy, indicating that the relevant policies for ensuring supply and stabilizing prices of important raw materials and primary products have achieved good results. In March, the production index of basic raw materials industry increased by 3.9 percentage points from the previous month to 50.1%. On the demand side, the demand for basic raw materials in the middle and lower reaches of domestic manufacturing industry is generally stable. At the same time, geopolitical conflicts have led to fluctuations in the production capacity of relevant countries, reduced exports, and some foreign demand has shifted to China. The new order index and new export order index of basic raw materials industry have rebounded from last month.
Experts said that on the whole, in March, due to short-term factors such as multiple outbreaks of epidemics and geopolitical conflicts, the economic growth rate has been adjusted back, but the economic operation still has a stable foundation.
Cai Jin, Vice President of China Federation of Logistics and Purchasing:It should be said that the whole macroeconomic policy is still in place. Of course, if we look at it now, we should also coordinate with the whole epidemic prevention and control policy, so that we can better play the macro-economic (policy) effect on the stable development of the whole economy.