Skip to content
Home » China's factory activity contracts on Covid curbs – YEN.COM.GH – Yen.com.gh

China's factory activity contracts on Covid curbs – YEN.COM.GH – Yen.com.gh

Be the first to get hottest news from our Editor-in-Chief
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Global site navigation
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find “Recommended for you” block on the home page and enjoy!
China’s factory activity shrank in October, official data showed Monday, after industries were hit by strict Covid lockdowns.
The Purchasing Managers’ Index (PMI) — a key gauge of manufacturing in the world’s second-biggest economy — came in at 49.2, down from September’s 50.1 and below the 50-point mark separating growth from contraction, according to data from the National Bureau of Statistics (NBS).
Sporadic Covid-19 lockdowns around China have dampened demand and business confidence.
The manufacturing PMI has been in contraction territory for six out of the past eight months, as sweeping Covid restrictions paralysed major industrial cities such as Shanghai, Shenzhen and Chengdu and a summer of searing heat hit production.
“In October, affected by the frequent appearance of domestic outbreaks, China’s purchasing managers’ index declined,” NBS senior statistician Zhao Qinghe said in a statement.
Read also
Recession fears stalk Europe despite surprise German growth
Zhao said “the foundation for China’s economic recovery and development needs to be further consolidated,” noting both weakened demand and rising raw material prices.
PAY ATTENTION: Follow us on Instagram – get the most important news directly in your favourite app!
While activity at larger businesses expanded in October, work at small and medium-sized enterprises contracted significantly, with Zhao saying “the pressure on production and operation at small and medium-sized enterprises has increased.”
Meanwhile the non-manufacturing PMI came in at 48.7 points in October, a sharp decline from 50.6 in September and “below a critical point,” Zhao said in the statement.
Zhao said Covid outbreaks in October had hit the service industry especially hard, with activity by transport, accommodation and food and beverage businesses falling during a traditional peak period coinciding with week-long national holidays.
Chinese leaders have set out an annual GDP growth of about 5.5 percent, but many economists think the country will struggle to hit the target, despite announcing a better-than-expected 3.9 percent expansion in the third quarter.
Read also
Airlines giant IAG revenue back at pre-pandemic level
And officials have shown no sign that they intend to ease the country’s zero-Covid strategy, with President Xi Jinping last week promoting Li Qiang, who oversaw a debilitating two-month lockdown in Shanghai, to the second-most powerful post in the Communist Party.
New feature: Сheck out news that is picked for YOU ➡️ find “Recommended for you” block on the home page and enjoy!
Source: AFP
Be the first to get hottest news from our Editor-in-Chief
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Recommended for you





Be the first to get hottest news from our Editor-in-Chief
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Be the first to get hottest news from our Editor-in-Chief
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Be the first to get hottest news from our Editor-in-Chief
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news

source

Leave a Reply

Your email address will not be published. Required fields are marked *