The deterioration of manufacturing activity in China worsened slightly in December as a result of new outbreaks of COVID-19, according to the purchasing managers’ index (PMI) prepared by Caixin, which fell to 49 points from 49.4 in the previous month, thus accumulating five consecutive months of contraction.
COVID-19 containment measures, including temporary factory closures, combined with weaker customer demand, drove a further decline in manufacturing output at the end of the fourth quarter.
In addition, the implementation of these containment measures continued to affect logistics, lengthening supplier lead times for the sixth consecutive month.
«The outbreaks of COVID-19 slowed manufacturing activity,» explained Wang Zhe, senior economist at Caixin Insight Group, for whom the consequences of the pandemic were a drag on production and sales, while, «due to the economic downturn and weak overseas demand,» new export orders also remained in contraction for the fifth consecutive month.
However, Chinese manufacturers expressed greater optimism in December regarding the annual production outlook, boosting positive sentiment to the highest level in ten months, as companies anticipate that output will increase as the pandemic situation improves and market conditions strengthen.
Source: (EUROPA PRESS)
