China factory activity extends declines on Covid surge

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China factory activity extends declines on Covid surge
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China's factory activity shrank at a sharper pace in December as surging Covid-19 infections disrupted production and weighed on demand after Beijing largely removed anti-virus curbs, a private sector survey showed today.

The Caixin/Markit manufacturing purchasing managers' index fell to 49.0 in December from 49.4 in November. The index has stayed below the 50-point that separates growth from contraction for five straight months.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 focuses on smaller, export-oriented firms.

Weakening external demand amid slowing global growth continued to drag on orders for export-oriented producers, with the Caixin sub-index of new export orders shrinking at the fastest pace since September. Some analysts anticipate labour shortages and increased supply chain disruptions, combined with softer customer demand, may drive a further fall in production in winter months, even if mobility curbs are eased.

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RTEbusiness /  🏆 16. in İE

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