China's manufacturing purchasing managers' index (PMI) contracted for the second month in a row in October as power shortages persisted and raw materials prices rose further, according to the National Bureau of Statistics (NBS).
Tight power supplies and the government's renewed efforts to reduce industrial carbon dioxide emissions played a role in the contraction of industrial activity, analysts said, adding that the fall in factory activity was still within a reasonable range.
The NBS announced that the official PMI in October retreated to 49.2, down 0.4 points from the previous month, reflecting waning
The surging prices of raw materials and bulk commodities are a global issue. This reflects the ongoing COVID-19 pandemic, the rising risk of US inflationary pressure, and the depreciation of the US dollar, since many bulk commodities, such as crude oil, are priced in the US dollar.
Fortunately, electricity shortages are partly a seasonal factor that can be resolved.
Demand is weak while prices keep rising, especially those for raw materials and the wholesale prices of manufactured products. Factory gate prices reached their highest levels in October in recent years.
Nevertheless, the high-tech manufacturing sector kept growing in October, and China's imports and exports also kept picking up in September and October.
Even though the electric shortage causes some problems for our factory, we are still capable to manage all the ongoing and new orders.
By Global Times
Published: Oct 31, 2021 11:58 AM