Big blow to the economy in China! Manufacturing activity declines in July
Manufacturing activities did not pick up in the month of July even after the lifting of the prolonged lockdown in many major manufacturing centers of China due to the Kovid-19 epidemic.
Manufacturing activities in China did not pick up in the month of July.
Due to the Kovid-19 epidemic, many major manufacturing centers in China took a long time lockdown Manufacturing activities did not pick up pace in the month of July even after the withdrawal of Rs. A survey report published on Sunday has revealed an unsatisfactory situation about China’s manufacturing landscape. According to this report by China’s official statistics agency and industry group China Federation of Logistics and Purchasing, manufacturing activity remained sluggish in July due to weak global demand and strict measures to control the spread of the virus.
Exports and employment weakened in China
According to the report, the monthly Purchase Managers Index (PMI) has fallen from 50.2 in June to 49 in July. A PMI figure below 50 with a maximum of 100 points is considered a sign of declining manufacturing activity.
Apart from this, the pace of manufacturing sector seems to be slowing down on the number of new orders, exports and employment front. This is being considered a big blow to China’s economy, which has emerged in the last two decades as the manufacturing center of the world. Economist Zhang Liqun said that there is tremendous pressure on manufacturing. The impact of the pandemic is still being seen. The direct effect of reduced manufacturing activities can come in the form of reduction in employment opportunities.
Big crisis in China’s real estate sector
The ruling Communist Party of China has also stopped talking about this year’s economic growth target of 5.5 per cent as manufacturing activity slowed down. Now they are talking about getting the maximum possible result rather than any concrete figure.
Let us tell you that real estate has an important role in contributing one-third of China’s $17.5 trillion economy, but most of the debt in the Chinese bank is distributed to the companies of this sector. Last year, Chinese property developer real estate group Evergrand Group defaulted on loans. This has dealt a severe blow to the economy here. Shares of Evergrand Group declined amid the cash crunch in the country. As a result, investment in China declined.
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