China’s manufacturing economy improved slightly in April, but is still in rough sharp. The HSBC Flash Purchasing Managers Index (PMI) was 49.1 in April. That is up from 48.3 in March. Any number below 50 means the sector is contracting.
It is not possible to identify the exact reason for the problem, but it falls within only a few possibilities. The first is that the growing recession in the EU, the world’s largest region by GDP, has crippled China’s exports. The other is that consumer spending within China has slowed along with its overall economy. This second reason will cause the People’s Republic a host of issues. Millions of people continue to move from rural areas into cities to be factory workers. Many of these workers expect higher wages. Manufacturing companies with slowing sales cannot pay those higher wages without sharply lowering their margins, or operating at losses.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
