Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Decline in Factory Output of China Due to Stricter Pollution Rules


January, 31 2018
watermark Economic news

A slower growth in the manufacturing sector of China was less than expected this January due to an 8-month low of cooling property market as well as stricter rules related to pollution which resulted in less factory output.

This gave the first impression of the business situation of China by the start of 2018 and shifted the perception of a losing economy after the positive report of 6.9 in 2017 which has exceeded expectations.

The official report on the PMI published on Wednesday showed a decline to 51.3 in January compared to 51.6 in the previous month. Although, the figure stayed higher than the 50 mark which kept apart contraction from growth on a monthly basis.

Growth is predicted to decline a bit to 51.5 based on the survey done by Reuters to analysts. Reports including output indices, total new orders and imports reflected a moderate growth expansion in January than the previous month while the order of exports also declined slightly. The new export order index fell to 49.5 which is 2.4 percentage point lower than the month before.

Nonetheless, the overall factory data shows a solid growth in 19 consecutive months of growth. At the same time, this supports the idea of the gradual progress of the economy as expected. Economists forecast a 6.5 percent growth by Reuters this year.

Another report on PMI from the steel sector increased to 50.9 in January against 50.2 in December. Moreover, the report in China’s service sector reached a four-month high in January exemplifying a broader steadfast growth of the country. Statistics showed an increase of 55.3 from 55 in December according to non-manufacturing Purchasing Managers’ Index (PMI).

About half of the whole Chinese economy relies on the services sector and consumers would have more spending capacity with the rising of wages.

A sanguine services industry gives a good basis for policymakers who rely on services and consumption to balance the economic growth model with big dependence on exports and investments.

Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.