China’s factory, services activity contract further in November as ‘inevitable’ coronavirus curbs weigh on economy

China’s official manufacturing purchasing managers’ index (PMI) fell to 48 in November from 49.2 in October

Official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, fell to 46.7 in November from 48.7 in October

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China’s official manufacturing purchasing managers’ index (PMI) fell to 48 in November from 49.2 in October. Photo: AFP

Published: 9:37am, 30 Nov 2022Updated: 3:24pm, 30 Nov 2022

The “inevitable” economic cost of Chinese cities being forced to impose restrictions amid a surge in coronavirus cases has already started to appear, analysts say, as activity in China’s factory and services sectors slowed further in November.

The official manufacturing purchasing managers’ index (PMI) fell to 48 this month, down from 49.2 in October, the National Bureau of Statistics (NBS) confirmed on Wednesday.

This was the lowest reading since April after remaining below the 50-mark that separates growth from contraction on a monthly basis for a second consecutive month, and it comes at as coronavirus disruptions and lockdowns have returned across China, with daily infections rising to around 40,000.

The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, also fell to its lowest point since April after slowing to 46.7 in November from 48.7 in October.

The reopening process has started, which will likely help the economy rebound in the second half of 2023

Zhang Zhiwei

“The China NBS purchasing managers’ indices survey suggested manufacturing activity worsened in November on tightened Covid curbs and weak demand,” said analysts at Goldman Sachs.

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