The Strategist

China's industrial activity falls for second consecutive month

12/01/2022 - 09:38

The National Bureau of Statistics reports that the business activity index (PMI) for China's manufacturing sector dropped to 48 points in November.

The nation's industrial activity index has declined the most since April.

The manufacturing PMI in China fell for the second consecutive month. The figure was 49.2 points in September. A PMI score above 50 denotes increased activity, while one below 50 denotes a slowdown. At the same time, analysts surveyed by Bloomberg expected the PMI will be 49 points that by the end of November.

The increase of COVID-19 cases and the implementation of stringent quarantine measures across the nation, including the closing of factories, are to blame for the slowdown in industrial activity. 53% of Chinese businesses reported having at least one person ill by COVID-19 in November, according to China Beige Book International.