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China’s factory activity shrank in December as Covid-19 ‘continued to take a toll on the economy’
- Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 49 in December, down from 49.4 in November
- On Saturday, China’s official manufacturing PMI fell to 47 in December from 48 in November
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China’s factory activity shrank at a sharper pace in December as surging coronavirus infections disrupted production and weighed on demand after Beijing largely removed antivirus curbs, a private sector survey showed on Tuesday.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 49 in December from 49.4 in November. The index has stayed below the 50-point that separates growth from contraction for five straight months.
The reading was the lowest since September but beat analysts’ forecast of 48.8 in a Reuters poll.
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China’s larger official PMI survey on Saturday showed a much sharper decline, with the activity index falling to a near three-year low. The Caixin survey is believed to focus on smaller, export-oriented firms.
The figures provide a snapshot of the challenges faced by Chinese manufacturers who now have to contend with surging infections after the country’s abrupt policy U-turn in early December.
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