Released: 22 November 2018
Sales Managers Pessimistic in November in the Chinese Manufacturing Sector
- The bad news: Business Confidence and Job Market Indexes falling
- More bad news: Prices Charged Index at 66 month high
- The good news: despite increasing pessimism Sales Managers are still seeing growth
A mixed bag of indicators this month from the Chinese manufacturing sector.
On the one hand, it is now very clear than prices are continuing to rise at a rate that, if continued much longer, will spell problems for those attempting to control the Chinese economy.
The China Manufacturing Price Index is now at a 66 month high, with an Index reading of 54.1, an uncomfortable level for an economy with significant focus on exports, not to mention the domestic problems posed by price high inflation. Possibly partly due to continuing price rises, Business Confidence in the Manufacturing sector is falling, and is now way below the levels recorded as recently as 2014/15. The widespread wave of optimism about the future course of the economy has now all but evaporated, which will inevitably depress investment, and cause further problems down the line.
Despite the bad news on the Confidence, Price and Job Market fronts, many individual Sales Managers are still seeing growth in their respective markets, although at a much reduced level compared with that seen a few years ago.
Overall, the November survey points to a continuing deterioration of business conditions in the Manufacturing sector in China.
China: Headline Sales Managers’ Index (SMI) for Manufacturing
The Headline Sales Managers' Index (SMI) - a composite indicator designed to provide the most up-to-date assessment of business activity.
Access China Manufacturing SMI Charts & Data
DATA AND CHARTS COVERING ALL INDEXES BELOW CAN BE SUPPLIED TO JOURNALISTS AND WORLD ECONOMICS SUBSCRIBERS EACH MONTH:
- HEADLINE SALES MANAGERS’ INDEX (SMI)
- BUSINESS CONFIDENCE INDEX
- MARKET GROWTH INDEX
- SALES GROWTH INDEX
- PRICES CHARGED INDEX
- STAFFING LEVELS INDEX
FOR MORE DETAILS OF THE WORLD ECONOMICS MONTHLY SURVEY OF CHINESE MANUFACTURING GROWTH PLEASE EMAIL DATA@WORLDECONOMICS.COM OR PHONE: +44 (0) 20 3372 5612