China’s
manufacturing and services sectors contracted in October, underscoring the
mounting economic pressure caused by stricter Covid-19 containment measures
across the country.
On Sunday,
October 30, Chinese authorities reported 2,675 new locally transmitted Covid-19
cases, marking the largest nationwide increase since August 10. The surge
represents a sharp acceleration compared to the roughly 1,400 daily average
recorded over the previous five days. The virus is spreading rapidly across
several provinces, including some of China’s most economically significant
regions, raising concerns about further disruptions to business activity and
supply chains.
Official data
released Monday by the National Bureau of Statistics (NBS) showed the
manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 in October, down
from 50.1 in September. A reading below 50 indicates contraction. The
non-manufacturing PMI, which tracks activity in the construction and services
sectors, also declined to 48.7 from 50.6 the previous month, falling short of
market expectations.
Additional data
suggest that smaller, export-oriented manufacturers are facing even steeper
challenges. Caixin’s manufacturing PMI pointed to declining new orders, rising
product prices, and continued pressure on employment levels — signaling
weakening demand both domestically and abroad.
Analysts caution
that the latest figures dampen hopes for a near-term economic rebound. “Today’s
data suggest it is too early to bet on China’s economic recovery,” said Raymond
Yeung, Chief Economist for Greater China at Australia & New Zealand Banking
Group Ltd.
The combined
impact of renewed Covid restrictions and softening demand continues to weigh on
the world’s second-largest economy, clouding the outlook for growth in the
months ahead.
Source: Food Business News Articles
