The manufacturing industry in China has thus had the brakes on since April 2023, with the exception of three individual months. The index rises to 49.8, but is still below the 50-line.
The service sector falls to exactly 50.0 – i.e., neither braking nor expansion.
The weak index figures show how deep and broad the downturn in the Chinese economy has become. China's central bank has announced large stimulus packages since last week, including cuts in interest rates and reduced capital requirements for Chinese banks.
As recently as Sunday, China's central bank also instructed mortgage banks to lower interest rates on mortgages by at least 0.30 percentage points below the interest rate as of October 31.
Two major Chinese cities – Shanghai and Shenzhen – have also eased restrictions on non-resident Chinese citizens buying homes to boost the real estate market.
