The mood in China’s industry remains bad.
The state shopping manager index, which depicts the mood in more larger and state companies, was 49.4 points in August. This is a minimal increase of 0.1 points compared to the previous month, as the statistics office in Beijing announced. However, the economic indicator remains significantly below the critical threshold of 50.
The shopping manager index is an important early indicator for analysts and decision -makers. With a value of more than 50 points, the statisticians assume an expanding economic activity. If the value is below, this signals shrinking industrial activity.
China’s economy is under pressure because of a continuing real estate crisis, a weak internal consumption and the trade dispute with the USA. US President Donald Trump announced 145 percent punitive tariffs on Chinese imports. The Chinese side then decided 125 percent taxes on US imports. However, both states have currently agreed on a break in the customs dispute that is valid until November. Until then, only the existing taxes of 30 and 10 percent apply.
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Beijing (dpa-Afx)