China’s factory activity weighed down by coronavirus-induced weak demand, slips back into contraction
- The Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 49.9 in November from 53.8 in October
- On Tuesday, China’s official non-manufacturing PMI rose to 50.1 in November, up from 49.2 in October
China’s factory activity fell back into contraction in November as subdued demand, shrinking employment and elevated prices weighed on manufacturers, a business survey showed on Wednesday.
The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum since the second half as it grapples with a slowing manufacturing sector, debt problems in the property market and Covid-19 outbreaks.
Analysts expect the slowdown in gross domestic product (GDP) seen in the third quarter to continue in the fourth with demand expected to remain soft given the prolonged global Covid-19 pandemic.
“Supply in the manufacturing sector recovered, while demand weakened. Relaxing constraints on the supply side, especially the easing of the power crunch, quickened the pace of production recovery,” said Wang Zhe, senior economist at Caixin Insight Group.
“But demand was relatively weak, suppressed by the Covid-19 epidemic and rising product prices.”
