China’s PMI Growth Dips Toward Zero

By Douglas A. McIntyre Updated Jan 11, 3:37PM EST · Published Oct 31, 6:35AM EDT

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China’s PMI Growth Dips Toward Zero — © SeanPavonePhoto / Getty Images

The National Bureau of Statistics of China has announced the nation’s purchasing managers index (PMI) reading for October. It was 50.2, on a scale where 50 is the line between expansion and contraction. The trade war between China and the United States apparently has hurt China’s manufacturing sector.

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The bureau reported:

In October 2018, China’s manufacturing purchasing managers index (PMI) was 50.2 percent, a decrease of 0.6 percentage point from last month, the manufacturing industry continually located in the expansion interval, while the pace of expansion has slowed down.

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Small companies and the labor force took the brunt of the slowdown. The report showed:

In view of the sizes of enterprises, the PMI of large-sized enterprises was 51.6 percent, decreased 0.5 percentage point from last month, and continued to maintain its expansion generally; that of medium-sized enterprises and small-sized enterprises were 47.7 percent, 49.8 percent, which decreased 1.0 percentage point and 0.6 percentage point respectively from last month, lower than the threshold.

And:

Employed person index was 48.1 percent, decreased 0.2 percentage point from last month, lower than the threshold, indicating that the manufacturing enterprises’ labor employment decreased.

At the current rate of fall off, the major PMI number could slip below 50 in the next month or two.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.