China's manufacturing purchasing managers' index came in at 50.1 in December, maintaining in the expansion range for a third consecutive month, according to data released by the National Bureau of Statistics.
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/
The index is calculated on a scale of 0 to 100, with 50 as the threshold:
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/