The Purchasing Managers’ Index, the mainstay for monitoring industrial activity, scored 47.4 points in April, that is, below the 50-point threshold that separates growth from contraction, while the authorities announced an increase in “the decline in production and demand,” according to AFP.
The figures come as Beijing’s policies aimed at eliminating the “Covid-19” virus are facing pressure from the return of the Omicron mutant.
Dozens of cities, including economic centers such as Shenzhen and Shanghai, have imposed comprehensive or partial closures in the past months..
The strict policies imposed, even though many countries of the world are learning to live with the virus, have caused increasing economic difficulties, while closure measures disrupt supply chains and leave goods piled in the world’s busiest container ports..
The chief expert at the National Statistics Center, Zhao Qinghe, acknowledged that some enterprises “have had to reduce or stop production, while many companies have experienced increasing transportation difficulties.”.
He added, “The production and operation of institutions were greatly affected,” according to a statement by the center, which also indicated that the price indicators of raw materials are still “relatively high.”“.
The index of non-manufacturing activity also fell to its lowest level since the beginning of 2020, according to the center’s figures, at a time when the Labor Day holiday is approaching..
And on Saturday, the Chinese media group “Caixin” published its Purchasing Managers’ Index, which showed a decline for the second month in a row from 48.1 to 46.0.
Some believe that the “Kaishin” figures, which include small and medium-sized enterprises, more accurately reflect the economic situation of China compared to the official figures of the government, which closely monitors the status of large government groups.
“The anti-Covid measures have affected logistics services,” said Wang Qi, an economist at Caixin Insight Group, in a statement.“.
Kaishin also noted that companies have expressed concern about how long the COVID measures will continue to be imposed.
And on Thursday, the giant technology “Apple” warned that the closure measures related to Covid in China, will be among the factors that will lead to a decline in the numbers of the third quarter (April to June) by 4 to 8 billion euros..
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