China’s industrial activity fell sharply in December for the third consecutive month, official data showed on Saturday, despite Beijing easing restrictions related to the COVID-19 pandemic earlier in the month.
The purchasing managers’ index, the main one for tracking industrial activity, scored 47 points, up from 48 points in November, and below the 50-point threshold that separates growth from contraction, according to the report. Data from the National Statistics Centre.
For more than two years, China has continued to implement the “zero Covid” strategy to limit the spread of the virus, which has had repercussions on the global economy, according to Agence France-Presse.
On December 7, Beijing suddenly decided to ease the restrictions on Covid-19, knowing that it was still in trouble due to a new outbreak of infections.
“In December, due to the repercussions of the epidemic and other factors … China’s economic prosperity in general declined,” said Zhao Qinghe, an expert at the National Statistics Center.
He added, “The outbreak has had a significant impact on business production, demand, employee attendance, logistics issues, and distribution.”
The index has been in negative territory since September. The figure recorded in September fell short of Bloomberg analysts’ forecast by 47.8 points.
“As the epidemiological situation gradually improves, the market trend is expected to recover later,” Zhao wrote.
On the other hand, the non-manufacturing PMI, which includes the services and construction sectors, also fell to 41.6 points this month, from 46.7 points in November.
The government had set a growth target of around 5.5% this year, after reaching more than 8% in 2021.
But many economists now view the 2022 target as unrealistic.
China will reveal its GDP performance for the year in January.
