China's Factory Activity Contracts On Covid Curbs

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2022-10-31 HKT 11:01

Share this story

facebook

  • The National Bureau of Statistics says the foundation for China's economic recovery and development needs to be further consolidated. File photo: AFP

    The National Bureau of Statistics says the foundation for China's economic recovery and development needs to be further consolidated. File photo: AFP

The nation's factory activity shrank in October, official data showed on Monday, after industries were hit by the pandemic.

The Purchasing Managers' Index (PMI) – a key gauge of manufacturing in the world's second-biggest economy – came in at 49.2, down from September's 50.1 and below the 50-point mark separating growth from contraction, according to data from the National Bureau of Statistics (NBS).

It said the pandemic on the mainland has dampened demand.

"In October, affected by the frequent appearance of domestic outbreaks, China's purchasing managers' index declined," NBS senior statistician Zhao Qinghe said in a statement.

Zhao said "the foundation for China's economic recovery and development needs to be further consolidated," noting both weakened demand and rising raw material prices.

While activity at larger businesses expanded in October, work at small and medium-sized enterprises contracted significantly, with Zhao saying "the pressure on production and operation at small and medium-sized enterprises has increased."

Meanwhile the non-manufacturing PMI came in at 48.7 points in October, a sharp decline from 50.6 in September and "below a critical point", Zhao said in the statement.

Zhao said Covid outbreaks in October had hit the service industry especially hard, with activity by transport, accommodation and food and beverage businesses falling during a traditional peak period coinciding with week-long national holidays. (AFP)

RECENT NEWS

US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads'

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more