Oriental Jincheng Wang Qing: The continued downward trend of PMI in November was mainly affected by insufficient demand
The Chief Macro Analyst of Oriental Jincheng, Wang Qing, has stated that the continued downward trend of the Purchasing Managers’ Index (PMI) in November was mainly due to insufficient demand. He emphasized that it is expected that policies to stabilize growth before the end of the year need to be implemented more vigorously.
Wang Qing analyzed that the manufacturing PMI index for the month of November continued to decline, primarily due to insufficient demand. Weak consumer goods consumption was cited as an important reason for the lack of demand in the manufacturing industry. The economic recovery process this year has been challenging, impacting residents’ income growth. Additionally, the continued adjustment of the property market has had a certain impact on residents’ consumer confidence. In response to the weak consumer demand and low price levels, he suggested that there is relatively more room for policies to target consumption before the end of the year, including issuing consumer vouchers or subsidies on a larger scale.
Highlighting two main features of the manufacturing PMI index in November, Wang Qing noted that the enterprise’s production and operation activity expectations index reached 55.8%, indicating a relative increase from the previous month and continuing to be in a relatively high economic range. This suggests that the economy as a whole is in the process of recovery. Furthermore, he emphasized that despite the recent economic challenges, the process of economic transformation and upgrading is still advancing.
It is important to note that the views expressed by Wang Qing do not constitute investment advice, as the stock market is risky and investment should be approached with caution.