China’s factory activity likely contracted more slowly in January

BEIJING, Jan 30 (Reuters) – China’s factory activity is expected to contract slower in January than in December, according to a Reuters poll. continued to be in poor health, hampering production. administration. “

The “exit wave” of infectious diseases moved through the population and labor force faster than economists expected, but disruptions continued on the production line.

The official manufacturing Purchasing Managers Index (PMI) improved to 49.8 in January from 47.0 in December, reversing the downtrend since September, according to the median forecast of 25 economists polled by Reuters. But I couldn’t go back to expansion. area.

Index readings above 50 indicate an expansion in activity on a monthly basis, readings below indicate a contraction. The official manufacturing PMI and services sector survey, which mainly focuses on large companies and state-owned enterprises, will be released on Tuesday.

The data is one of the National Bureau of Statistics’ first indicators of how the economy has managed after the end of China’s ‘zero-coronavirus’ regime following the week-long Lunar New Year celebrations that ended on Friday. It’s one. Many manufacturers had expressed concern that employee COVID infections and seasonal factory closures would have a significant impact on industrial productivity during the month.

According to China’s chief epidemiologist, 80% of people in China had already been infected with COVID-19 before the festivities began, and a “wave of exits” had passed through the country sooner than economists expected. It’s also less confusing.

“Early signs suggest that conditions have improved in January,” said a Capital Economics memo. The issue will become less important,” he added. PMI reading of 50.0.

China, the world’s second-largest economy, continues to face significant external headwinds on the demand side, but China’s export-oriented manufacturers continue to bolster orders amid lingering fears of a global recession. continues to report a decline.

China’s cabinet pledged on Saturday to boost consumption to spur an economic recovery. During the Lunar New Year holidays, consumption rose 12.2% year-on-year, despite concerns that COVID-induced staffing shortages could drag down the service sector.

The private sector Caixin Manufacturing PMI will be released on 1st February, with a focus on small businesses and coastal areas.

Poll by Madhumita Gokhale. Reported by Joe Cash.Edited by Simon Cameron Moore

Our Standards: Thomson Reuters Trust Principles.

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