An official government statistics of China’s manufacturing industry revealed that, manufacturing production in the world’s largest economy grew at a slower rate in January than the previous month, as the country’s harsh “zero-tolerance” COVID-19 policies stifled economic activity.
The purchasing managers’ index, as measured by China’s National Bureau of Statistics, fell to 50.1 in January from 50.3 in December, marking the third month of poor growth. Manufacturing activity declined even more in January, according to a separate PMI published on Sunday by the business journal Caixin, which fell from 50.9 in December to 49.1 in January.
PMI is measured on a 100-point scale, with numbers above 50 indicating increased activity and those below 50 indicating decreased activity.
According to the official measure, new orders, which are measured in a sub-index, decreased as well, falling to 49.3. New export orders activity also continued to fall in January, but at a slightly slower pace. Throughout the pandemic, Chinese exports have been a steady bright point.
Multiple COVID-19 outbreaks have occurred in China in the last month, prompting the country to impose stringent lockdowns beginning in December and going into the new year, preventing individuals from leaving their homes. Up to 20 million people have been affected by the lockdowns.
In a statement issued Sunday, Zhao Qinghe, a senior statistician at the National Bureau of Statistics, said China faced a number of obstacles, including a difficult economic environment and COVID-19 outbreaks around the country.
The non-manufacturing PMI fell from 52.7 in December to 51.1 in January, with weaker growth in the construction and service sectors.
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