Rebounding commodity index sign of warming Chinese economy

08 Jun '22

2 min read

Pic: Shutterstock

China factory production and market demand improved, implying that with timely and targeted policy support, its economic activities are poised for a steady recovery, gradually shaking off the impact of the pandemic, according to the China Bulk Merchandise Index, which gained 1.6 percentage points in May over the previous month to stand at 101.3 per cent.

Specifically, both supply and sales sub-indexes bottomed out and registered encouraging rebounds, with the latter at the highest notch in a year, said the China Federation of Logistics and Purchasing (CFLP).

With the epidemic influence abating markedly and pro-growth measures in force, market demand is recovering and business operations are showing positive signs, CFLP said. Sales of all major merchandise rose.

The expanding commodity market is proof of an economy emerging from the COVID-19 shadow, with disrupted factory activities and normal lives being back on track.

The logistics sector, one of the hardest-hit sectors amid the omicron outbreak, witnessed a recovery in May, with firms upbeat about the prospect. The manufacturing sector fared better in the month as its purchasing managers' index came in at 49.6, up from 47.4 in April, official Chinese media reported.

In the country's ongoing online shopping bonanza, which kicked off on June 1 and will last for weeks, many retailers said their sales volume took off in the beginning hours.

Fibre2Fashion News Desk (DS)

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