Production-induced slowdowns are seen in the Chinese economy

According to market analysts, the slowdown in inflation data may lead to a loss of power in spending. Depending on this situation, in an environment where recession fears intensify around the world, question marks about the growth of the country are increasing.

Although the country grew by 4.5 percent in the first quarter, surpassing expectations, the poor performance in the manufacturing industry draws attention.

Accordingly, industrial production in China increased by 3.9 percent on an annual basis and by 3 percent since the beginning of the year, falling short of expectations.

On the other hand, while the construction sector in the country also tended to slow down, securities-based investments decreased by 5.8 percent since the beginning of the year.

The Manufacturing Industry Purchasing Managers Index (PMI), which pointed to an expansion above the 50 level in China in January, dropped below the 50 level again in April after three-month expansion, indicating that the contraction in the manufacturing industry has started again. April manufacturing PMI fell to 49.2 and services PMI to 56.4.

Analysts pointed out that all sub-indices in the manufacturing industry PMI data fell compared to the previous month, and reported that demand declined more than production.

Stating that the contraction in iron and steel production gained even more strength in March, analysts said that this may indicate a slowdown in demand stemming from the housing market.