Industry
Production in China’s factories fell despite the relaxation of the corona virus
Despite the easing of strict corona measures, production in China’s factories fell in December. The so-called Purchasing Managers’ Index (PMI), an important index for production in China’s manufacturing sector, fell to 47 points.
Despite the relaxation of the strict corona measures, production in China’s factories fell in December. (Iconic image)
This was announced by the state statistics office on Saturday. In November it was still 48 points. Readings below 50 indicate a slowdown in economic activity in China.
China’s strict zero-Covid policy with lockdowns, mass tests and strict quarantine rules had severely slowed down economic growth in the world’s second largest economy. Numerous factories and other businesses had to temporarily cease operations, and supply chains were interrupted. The repeated lockdowns also dampened consumer sentiment.
At the beginning of December, Beijing then moved away from the zero-Covid policy in a radical about-face. It is no longer tested across the board and infected people are allowed to isolate themselves at home. At the same time, the country is currently recording more new infections than at any time since the pandemic began almost three years ago.
The economic recovery is also suffering as a result. “In December, China’s overall economic prosperity declined due to the impact of the epidemic and other factors,” said Bureau of Statistics chief statistician Zhao Qinghe. “The epidemic has had a significant impact on production and demand, staff attendance, logistics and distribution.”
(SDA)