In September this year, the China Caixin Flash Manufacturing Purchasing Managers Index (PMI) indicated a reading of 47.0, down from the Caixin PMI final reading of 47.3 for August, as announced by Beijing-based Caixin media group on September 23.
According to Dr. He Fan, chief economist for Caixin media group, the Caixin flash PMI in September indicates that China’s manufacturing industry is going through a crucial period of structural transformation, though the overall economic situation in China is basically sound. In addition, he stated that slack demand from the international market during the summer period has impacted the domestic manufacturing industry.
He Fan also said that the Chinese government increased fiscal expenditure in August this year, indicating strong government efforts on the fiscal policy front, while time may be needed for such measures to show their effectiveness.