At the beginning of the year, the supply and demand of China’s manufacturing industry continued to expand, and the prosperity was good. The Caixin China Manufacturing Purchasing Managers’ Index (PMI) for January, released on February 1, was 50.8, unchanged from December 2023, and above the line of expansion and contraction for three consecutive months. Expert analysis, under the influence of macroeconomic policies, domestic demand will recover steadily, and it is expected that the prosperity of manufacturing production and operation will continue to recover moderately.

BMXNOC0401 The Caixin China Manufacturing PMI sub-data showed that the manufacturing output index maintained expansion, and the new export orders index rose above the line of expansion.

“From the perspective of the breakdown, there was expansion at both ends of the supply and demand of the manufacturing industry in January. Against the backdrop of improving sales conditions, the manufacturing output index expanded for a third consecutive month, setting a new record for the past year and a half.” Huafu Securities chief economist Yan Xiang said in an interview with Shanghai Securities News.

Luo Huanjie, senior researcher of Guangkai Chief Industrial Research Institute, said in analyzing the reasons that the continuous improvement of external demand and exports led to the expansion of Caixin manufacturing PMI for three consecutive months.

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In addition, the raw material purchase price index and finished goods inventory index in the sub-data fell in the expansion range, and the ex-factory price index fell to the contraction range.

BMXNOC0401 Yan Xiang said that the current production end of the manufacturing industry is stronger than the demand, the price level is weak as a whole, and the support of macro policies for expanding domestic demand is expected to be further strengthened.

Manufacturing enterprises are more optimistic about the future of production and business activities. The Caixin China Manufacturing PMI data showed that the manufacturing production and operation expectations index rose to a nine-month high in January.

BMXNOC0401 Pang Ming, chief economist of Jones Lang Lasalle China, told reporters that in recent months, the PMI data of other major economies such as the United States, the euro zone, and Japan show that their manufacturing prosperity has continued to be depressed or slightly improved, and the foundation is not solid.

“Caixin manufacturing PMI fell in the expansion range for three consecutive months, indicating that on the basis of policy enhancement and endogenous momentum accumulation, China’s economic stabilization trend has been further consolidated and established.” Pang Ming said.