contraction in manufacturing activity in October

contraction in manufacturing activity in October

Beijing (awp/afp) – Manufacturing activity in China contracted again in October after a brief rebound last month, due to anti-Covid restrictions which penalize activity, according to official figures published on Monday.

The purchasing managers’ index (PMI) stood at 49.2 points against 50.1 in September, announced the National Bureau of Statistics (BNS).

A number below 50 indicates a downturn in activity.

Analysts polled by the Bloomberg agency had anticipated a contraction but more moderate (49.8).

Manufacturing activity picked up slightly in September after two months of contraction.

China continues to follow an inflexible anti-Covid strategy, almost three years after the first cases appeared in Wuhan (center).

This policy results in confinements as soon as positive cases appear, almost compulsory PCR tests several times a week or even the placement in quarantine of any traveler who has visited an affected area.

These measures, which lead to the unexpected closure of businesses and factories, penalize activity and travel, and weigh heavily on the economy.

For its part, the non-manufacturing PMI, which includes the services and construction sector, also fell this month, to 48.7 points.

The index was in positive territory in September (50.6). This is its first contraction since April.

dpa/al