Global economy
Chinese economic growth loses momentum
Sentiment in China's industry falls to lowest level since May 2020
In China, sentiment in small and medium-sized industrial companies has deteriorated again. The Purchasing Managers' Index calculated by the business magazine 'Caixin' fell surprisingly sharply to its lowest level since May 2020. It slipped by 1.0 points to 50.3 points in July compared to the previous month, as the magazine reported on Monday.
With the second decline in a row, the indicator is just above the so-called expansion threshold of 50 points. Values above this mark indicate growth in economic activity. Values below the mark signal a contraction.
The government in Beijing had already published its sentiment indicator for large and state-dominated industrial companies on Saturday. This fell by 0.5 points to 50.4 points.
Economists at Commerzbank see the latest data as an indication that the Chinese economy is likely to lose momentum. They fear further downside risks in the coming months.
After a strong start to the year, Chinese economic growth lost momentum in the spring. In the months from April to June, the world's second-largest economy grew by 7.9% year-on-year, following record growth of 18.3% in the first quarter. A sharp rise in commodity prices and a resurgence of the pandemic are considered to be the causes of the weakening economy.
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