is charged by Covid, the manufacturing activity at the lowest level for two years

is charged by Covid, the manufacturing activity at the lowest level for two years

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Since March, an outbreak has hit almost every province in China.

Manufacturing activity in China fell in April to its lowest level since February 2020, driven by the Covid outbreak that is plaguing the country’s economy, according to an official index released on Saturday.

The Responsible Markets Index (PMI), a key indicator of manufacturing activity, stood at 47.4 in April. A number above 50 indicates an expansion of activity and below that indicates a contraction.

Authorities said that “reduction of production and demandHe became stressed. Since March, an outbreak, the strongest since early 2020, has affected almost every province in China.

Beijing intends to pursue a zero-sum Covid policy of restricting the movement of tens of millions of people, especially in the northeast of the country and in Shanghai, the Chinese financial capital.

Its 25 million inhabitants have been severely confined to their homes since early April. These strict measures have blocked supply chains due to a lack of trucks, while goods have accumulated in its port, one of the largest in the world, and the entry and exit point of funds for goods in China.

SEE ALSO – Shanghai residents express anger over lockdown

Zhao Qinghe, a senior statistician at the National Bureau of Statistics (NBS), acknowledged that some companies had to cut or stop production, and many reported increased transfer difficulties.

Production and business activities have been greatly affectedZhao Qinghe said, according to a BNS statement, that it also noted that commodity price indices remain “Relatively highThe PMI for non-manufactured goods also fell to its lowest level since the beginning of 2020, according to SNB data.

On Saturday, the PMI index, released by the Caixin media group, also showed its second consecutive month of decline, falling from 48.1 last month to 46.0. Caixin’s figure, which targets mainly SMEs, is seen by some as a more accurate reflection of China’s economic situation than official government figures, which are closely monitoring the situation of large state-owned groups.

The Covid measures have wreaked havoc (in terms of) logisticssaid Wang Zhe, an economist at Caixin Insight Group, in a statement. Caixin also noted that companies have expressed concerns about the duration of the restrictions taken to combat Covid.

On Thursday, tech giant Apple warned that restrictions on Covid in China were among the factors that would reduce its revenue by $ 4 billion to $ 8 billion in the third quarter of the year-end fiscal year.

SEE ALSO – With the re-election of Emanuel Macron, China is ready to “cooperate with France”

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