Downward pressure on China’s manufacturing industry is increasing!
China’s manufacturing PMI drops to 48% in November
In November, affected by multiple factors such as Covid-19 and a more complex and severe international environment, China’s manufacturing PMI dropped below the line of PMI and decline again. The downward pressure on the manufacturing industry has increased. Recently, the data pointed out that in November 2022, China’s Manufacturing PMI was 48.0%, which was lower than 49.2% in the previous month, and the drop was comparable to the level in July this year. The production index was 47.8%, a decrease of 1.8% from October; the new order index was 46.4%, a decrease of 1.7% from October, both manufacturing production and market demand have dropped in China.
According to an analysis by analysts, the PMI index fell sharply below the line PMI in November, indicating that the economic recovery has further slowed down. The proportion of companies reporting insufficient demand increased to 55%, indicating that demand contraction has become the most important problem restricting economic recovery. The purchase volume index and the production and business activity expectation index continued to fall rapidly, indicating that business confidence has weakened significantly. Although the overall level of the manufacturing industry has declined this month, some industries still maintain expansion.
Group charter flights to other countries to get orders
In order to face the difficulty of ordering for foreign trade enterprises, Shenzhen, Suzhou, Wuxi, Jiaxing, and other cities have organized charter flights to go overseas to get orders and attract investment. Recently, Guangdong launched a plan to participate in overseas exhibitions with global charter flights. So far, a number of Guangdong enterprises have organized to participate in overseas exhibitions in Malaysia, Indonesia, Singapore, and other places. On October 30, China Southern Airlines flight CZ5255 took off from Guangzhou Baiyun Airport, destined for Kuala Lumpur, Malaysia. This is the first business charter flight organized by Guangdong Province since Covid-19, carrying 79 traders from 47 Guangdong enterprises.
In addition, more business charter plans are being implemented. On November 14, a total of 160 people from 69 Guangdong enterprises took a chartered flight to Singapore to participate in the 2022 Asia Pacific Beauty Expo. At the same time, cities at various levels in Guangdong are also restarting overseas economic and trade exchange activities one after another, and more and more business charter flights are flying from Guangdong all over the world. On November 24, the Foshan economic and trade team arrived in Warsaw, Poland, and then went to Germany and Hungary. This is also the first economic and trade team in Guangdong Province led by the government to organize entrepreneurs to go abroad for exchange activities. On November 17, the investment group to Japan organized by Suzhou set off. According to reports, it is the first time in the past three years that Suzhou has chartered flights abroad to attract investment and expand markets to get orders.
Manufacturing data for other countries
On December 1, the business survey released by S&P Global showed that the manufacturing industries in Europe and Asia both shrank. As European and American central banks continue to raise interest rates to combat the worst inflation in decades, businesses and households are under increasing pressure. Asian manufacturing companies will continue to face orders cut by European and American customers, and it is unlikely that they will get out of the winter of demand in the short term. According to S&P global data, the final manufacturing PMI in the eurozone in November was 47.1, lower than the initial estimate of 47.3. Although it was the first rebound since January this year, it has been below 50% for five consecutive months.
Due to the sluggish import demand in developed countries in Europe and the United States, the manufacturing industry in most Asian countries is shrinking rapidly, among which Vietnam is the most serious. S&P Global data showed that in November, Japan’s initial manufacturing PMI was 49.4, down from 50.7 in October. In addition, due to weak overseas demand, the manufacturing situation in South Korea and Taiwan, the electronics manufacturing center, continued to deteriorate. It is worth noting that there were also some positive results in Southeast Asia, with the Philippines’ final November manufacturing PMI at 52.7, the best performer in Southeast Asia, and PMIs for Thailand and Indonesia continue to expand.
