Official data showed on Monday. Pictured here on October 27, 2022, in Jiangsu province is a company that manufactures aluminum products.
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BEIJING – China’s factory activity fell in October due to frequent Covid-19 outbreaks, the National Bureau of Statistics said on Monday.
Data showed that the official purchasing managers index for the manufacturing sector fell to 49.2 this month, down from 50.1 in September.
According to analysts polled by Reuters.
Readings below 50 indicate shrinking business activity, while numbers above 50 reflect expansion. The index surveys businesses on operating conditions.
The index has stayed below 50 for six of the 10 months of the year so far.
Sub-indexes for factory employment, manufacturing, new orders and supplier delivery times all showed October declines compared with September.
“The decline in the manufacturing PMI was driven in particular by a drop in the new orders sub-index (to 48.1 in October from 49.8 in September), suggesting weak future demand. more,” Nomura’s Head of China Economics, Ting Lu, said in a note.
He pointed out that the employment sub-index has now fallen for 19 consecutive months.
Foxconn and Covid
Reduced service activity
Data released on Monday showed China’s service activity fell in October for the first time since May.
The Non-Manufacturing Purchasing Managers’ Index stood at 48.7 in October.
However, the statistics agency says the sub-indices for postal services, internet software and information technology services are all above 60 with business growth predicted for the Singles’ Day shopping festival on Sunday. November.
Services and consumption have been weak since the pandemic began nearly three years ago.
Goldman Sachs analysis shows that the GDP contribution from restaurants and hotels is nearly 20% below the 2019 trend.
The GDP of the industrial sector is in line with 2019 trends, thanks to strong foreign demand, analysts say.
They note how agriculture has outperformed pre-pandemic trends as Beijing emphasizes food supply security.
