China’s economy suffers blow as factory activity slows

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China’s economy suffers blow as factory activity slows
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Manufacturing PMI falls for fifth month as Beijing prepares to unveil growth target at annual parliament session

China’s economy showed further signs of sluggish momentum as factory activity slowed, increasing pressure on President Xi Jinping take stronger action to boost growth days before Beijing opens its annual flagship political event. The country’s official manufacturing purchasing managers’ index stood at 49.1 for February, according to figures released on Friday, slipping from a reading of 49.2 in January and in line with a Reuters analyst forecast.

Analysts expect Beijing to announce a growth target for 2024 of about 5 per cent. This would be the same as last year’s figure, which was the lowest in decades. But it would be harder to achieve this year because of the absence of a low base effect from the coronavirus pandemic that flattered growth in 2023. The CCP leadership body, the politburo, this week indicated this week that it was open to more stimulus measures, though few expect Beijing to announce a “bazooka” package as in the past.

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