- cross-posted to:
- sino@hexbear.net
- china
- cross-posted to:
- sino@hexbear.net
- china
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A PMI of 50.1 signals how much change in percentage terms?
The index is calculated on a scale of 0 to 100, with 50 as the threshold:
- > 50 indicates expansion in the manufacturing sector
- < 50: suggests contraction
- 50: means no change
So, 50.1 means that the manufacturing sector is roughly staying stable at the current levels of production. A sustained PMI above 50 suggests that the economy is likely to grow, while dipping below 50 signals a slowdown. So, China’s economy is still growing, but only just which is not necessarily a bad thing either. Incidentally, Xi was making this point recently https://fortune.com/2024/12/29/china-economy-deflation-xi-jinping-growth-slump-consumer-producer-prices/