In light of the factories' damage to inflation, the economic recession deepened in China

The growth of the manufacturing sector in China for the second month in a row after shaking the energy lack and turmoil in the real estate development industry, the second largest economy in the world.

According to official figures, the indicators of manufacturing managers announced a main reading of 49.2 points last month, below the level of 50 points that indicates expansion, and this data would increase fears of the slowdown of the Chinese economy with the slowdown of construction projects and the high prices of basic commodities in factories.

The writer Simon Duk, in a report published by the British newspaper "The Times", said that the manufacturing sector has slowed down this year, with production growth last September at the weakest pace since March of last year due to the new environmental rules, Creation of energy, high costs of raw materials.

According to the report, the sub -production index fell to 48.4 points in October after it was in the range of 49.5 points in September, while the new request scale shrinks for the third month in a row.

The Chinese Logistics Information Center explains that about a third of the companies included in the study stated that insufficient demand is the greatest difficulty, and this indicates that insufficient demand has limited its production..

The factory delivery scale increased to 61.1 point, which is the highest level since 2016, indicating that inflationary pressures accumulate at a time when the economy is generally slowing down.

What about stimulating the economy?

The writer pointed out that the economic background will make the legislators walk on a tight rope, while they are considering taking measures to stimulate the economy without increasing inflation.

Analysts who have surveyed Reuters expect their opinions that the Popular Bank of China is refraining from attempts to stimulate the economy by reducing the cash liquidity that banks must keep in reserves until the first quarter of next year.

The economy has been affected by many problems, from the lack of computer chips, logistical bottleneck.

Haw Zo, an economist at the German Commercial Bank, confirms that production "is still weak, and this indicates that the problem of demand may be relatively large, and there is still a need for some facilitation in politics.".

The economic slowdown coincided with reforms made by President Xi Jinping to reduce feelings of discontent with the wealthy and strengthen his authority, and his endeavor to achieve "common prosperity" cut the wings of real estate emperors, technology, games, entertainment and private education;However, economic hardship increased pressure to take a more soft position, especially with real estate and construction companies that were severely affected by the debt crisis in Evergrande for real estate development, according to the report, according to the report, according to the report, according to the report, according to the report..