- Reuters: // realtime / verb = Open / url = cpurl: //apps.cp./Apps/econ-polls? RIC = CNPMIB% 3DECIO Official Manufacturing PMI Survey Data
- Reuters: // realtime / verb = Open / url = cpurl: //apps.cp./Apps/econ-polls? RIC = CNPMIC% 3DECI Caixin making PMI survey data
BEIJING, Sept.28 (Reuters) – Chinese factory activity likely rose only slightly in September, a Reuters poll found on Tuesday, as high commodity prices and power cuts continued to put pressure on manufacturers of the world’s second-largest economy.
The official manufacturing purchasing managers index (PMI) is expected to remain at 50.1 in September, the same as in August, according to the median forecast of 34 economists polled by Reuters. A reading above 50 indicates an expansion from the previous month.
China’s economy quickly recovered from a pandemic-induced slump last year, but momentum has weakened in recent months as the vast manufacturing sector faces increased costs and bottlenecks production, and more recently, the rationing of electricity.
China is in the throes of an energy crisis as a shortage of coal supplies, tougher emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered general restrictions on use. Read more
“Unless the electricity issues are resolved and production restrictions lifted, Beijing’s efforts to ease policy will have a more moderate impact on economic output. Thus, power shortages raise the possibility that any economic rebound be delayed, “analysts from BCA Research said. Tuesday.
China is also grappling with ongoing small-scale coronavirus outbreaks in southeast Fujian Province and northeast Heilongjiang Province.
Rising commodity prices, especially metals and semiconductors, also weighed on earnings. Chinese industrial company profits in August slowed for the sixth consecutive month. Read more
The official PMI, which focuses mainly on large state-owned companies, and its sister survey of the service sector, will both be released on Thursday.
Caixin’s private manufacturing PMI will also be released on the same day. Analysts expect the stock reading to rise to 49.5 from 49.2 the previous month, remaining in contraction.
Reporting by Gabriel Crossley; Editing by Raju Gopalakrishnan
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