BEIJING (Reuters) – China’s factory activity grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, but still in line with the continued recovery in the second-largest economy in the UK. world.
The official Manufacturing Purchasing Manager’s Index (PMI) fell to 51.3 in January from 51.9 in December, the National Bureau of Statistics said in a statement on Sunday.
It remained above the 50-point mark that separates growth from shortening each month, but was below the expected 51.6 in Reuters opinion polls of analysts ’forecasts.
In January, mainland China reported more than 2,000 local cases of the coronavirus. Although the number was small compared to other countries, authorities were concerned about the dangers of dispersal during the Lunar New Year – the world’s largest annual human migration spanning 40 days from January to February.
During the month several cities were locked down with tens of millions tested for COVID-19, halting factory activity and putting pressure on the services sector, including logistics and transportation.
“The recent local outbreak has had a significant impact on the productivity and operation of some enterprises, and the overall expansion of the manufacturing industry has slowed,” said Zhao Qinghe, an official at the Bureau of Statistics.
“The pre- and post-lunar New Year period is also traditionally a time of season for the country’s manufacturing industry,” Zhao said in an accompanying statement.
The new coronavirus revolution, mostly in the north, is expected to be a temporary deterrent as China’s major industrial sector continues to find strength in sustained off-demand demand. otherwise.
The official PMI, which is largely focused on large and state-owned companies, showed that the subprime for new export orders was at 50.2, widening for the fifth straight month, although down from 51.3 in December.
Economic signals from trade to producer prices all suggest another boost in the industry sector.
The subprime for strong activity was at 49.4 in January, up from 48.8 in December.
China’s gross domestic product grew 2.3% year-on-year in 2020, making it the world’s only major economy in decline last year as many countries struggled to spread the COVID epidemic -19 contain.
The central bank will expand the country’s monetary policy support for economic growth with a focus on increasing employment to help boost spending, Governor Yi Gang said last week.
In the services sector, activity expanded for the 11th straight month, the Bureau of Statistics said, albeit at a slower rate, measured by the most recent COVID-19 revolutions.
Reciting with Ryan Woo, Tina Qiao and Colin Qian; Edited by Sam Holmes