With the release of data for January 2024, China's manufacturing purchasing managers' index (PMI) showed a gratifying upward trend, reaching 492%, up 02 percentage points. This positive change shows that China's manufacturing industry is gradually emerging from its recent predicament, laying the foundation for economic recovery.
From a data analytics perspective, the rebound in the manufacturing PMI was mainly due to the improvement in the production index and the new orders index. The production index is 513%, up 11 percentage point, reaching a high in nearly 4 months. This means that production activities in the manufacturing sector are accelerating, and the capacity utilization rate of enterprises has improved. The new orders index was 490%, up 03 percentage points, which indicates that market demand has begun to pick up, and the number of orders received by enterprises has increased.
However, despite the overall recovery in manufacturing PMI, there are still some industries and businesses facing challenges. For example, a small business has a PMI of 472%, which is below the critical point, indicating that small enterprises are still facing greater operating pressure in the current market environment. In addition, the raw material inventory index and employment index are also below the critical point, which means that the inventory pressure of some enterprises is large, and the demand for labor may face a certain contraction.
In order to further promote the development of the manufacturing industry, enterprises need to take a series of measures. First of all, we should continue to increase tax cuts and fee reductions to reduce the cost burden of enterprises and improve their profitability. At the same time, support for small and medium-sized enterprises should be strengthened to help them tide over the difficulties. Secondly, enterprises themselves also need to strengthen technological innovation and management innovation, improve the quality and competitiveness of products, in order to cope with market changes and challenges.
In addition, the non-manufacturing business activity index also showed a steady expansion trend, injecting impetus into the economic recovery. The composite PMI output index continues to be higher than the critical point, indicating that the overall production and business activities of Chinese enterprises continue to expand. This series of positive data shows that China's economy is gradually coming out of the trough and showing signs of recovery.
China's manufacturing PMI rebounded to 492% is a positive sign that China's economy is gradually recovering. ** and enterprises need to continue to work hard to jointly promote the sustainable and healthy development of the economy. We look forward to seeing more positive changes in the coming months, injecting more confidence and momentum into the future of China's economy.