In the manufacturing sector Business Confidence has climbed over the 50 "no change" line, which is clearly encouraging. But both Market and Sales Growth Indexes registered data in negative territory, with the latter index at a 29 month low.

Better news came from the steady rise of the Staffing Index, but it too remained marginally below the 50 line. In relation to Covid induced shortages the best news clearly came from the Prices Index, which fell once again to a level of 47.1, a 16 month low, suggesting that the massive price hikes of the covid period are now well and truly over.

The apparent stagnation of the Manufacturing sector, was more than mirrored in the large Services area of business activity. Both Business Confidence and Staffing Indexes fell to the lowest levels ever recorded by the Sales Managers survey.

All the Services sector indexes recorded index values below the 50 line, suggesting China has some way to go before it can benefit from overall economic growth at levels anywhere near to those recorded pre Covid.

Measured over all sectors, the Chinese economy does not look well placed, with Covid still impacting negatively on many of the companies in our survey.
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