Hey everyone! Have you ever wondered how we can tell if a country’s factories are busy making things or not? One way to find out is by looking at something called the Purchasing Managers’ Index, or PMI for short.
So, what’s PMI? 🤔 It’s a special number that tells us if factories are making more stuff (like toys, clothes, and gadgets) or less stuff compared to before. If the number is above 50, it means factories are making more things (that’s called expansion), and if it’s below 50, they’re making fewer things (that’s called contraction).
In January, China’s manufacturing PMI was 49.1. That means factories were a bit less busy than in December. But don’t worry! There’s a good reason for that. January is when people celebrate the Spring Festival, also known as the Chinese New Year 🎉. Many workers go back home to be with their families, so factories slow down for a little while.
But here’s the exciting part! The Manufacturing Activity Expectation Index went up to 55.3. That means factory managers are feeling super positive about the future! They’re expecting things to pick up after the holidays.
What about services like shopping and food? Well, the non-manufacturing PMI, which includes services like transportation, restaurants, and shops, was 50.2. That’s still above 50, so it’s growing! The New Year celebrations helped these businesses because lots of people were out having fun, eating yummy food, and buying gifts 🛍️.
Experts say that even though January was a bit slow for factories, things are looking up. With new policies to help businesses and plans from the recent Central Economic Work Conference, people believe that China’s economy will get stronger in the first part of this year.
Fun Fact: Big companies in China made over 7.4 trillion yuan (that’s about $1.02 trillion) in profits in 2022! 😮 Even though that’s a bit less than the year before, they started doing better towards the end of the year.
So, even if January was a little slow because of the holidays, everyone is hopeful and excited for what’s coming next! Let’s see how the rest of the year goes! 🚀
Reference(s):
China's Jan. manufacturing PMI contracts on seasonal factors
cgtn.com
