According the results of an official survey, the growth rate manufacturing sector in China slowed down faster than expected on April 2017. China’s producer price inflation calm down for the first time in seven months in March as iron ore and coal prices declined, while property sales growth slowed in the first quarter despite robust property investment.
There was also a decrease in April in the National Bureau of Statistics’ official Purchasing Managers’ Index (PMI) to 51.2 from 51.8 of March. The input price sub-index fell from 59.3 of March to 51.8 in April. As a result there was also a decline in the rate of demand in manufacturing industry in China.
On the other hand, the Chinese authorities started to show huge effort to fiz the worsening in economy. Unfortunately, Chinese steel and iron ore futures has a collapse this month as market sentiment turned to decrease on demand outlook and worries mounted about a glut of steel later this year. There was also a decline in the employment sub-index from .to 49.2. The raw materials inventories sub-index was unchanged at rate of 48.3.
Growth rate of China’s services sector also slowed in April.
China started the year with an economic growth which is faster than expected by the help of the government infrastructure spendings and the property boom. However, as the authorities start to follow policies to control the property sector and as the Central Bank of China and banking regulator take steps to contain financial risks, the growth rate of China began to calm down.
According to the analysts if not managed properly, the property sector in China may cause a great depression of Chinese economy. Some analysts believe that despite China’s economic growth have peaked in the first quarter of 2017 it will be around 6.5 percent this year.
President Xi Jinping stated the need of increased efforts prevent systemic risks to help maintain financial security.