Jan 03, 2023 09:45 AM

China Manufacturing Activity Shrinks for Fifth Straight Month, Caixin PMI Shows

Activity in China’s manufacturing sector contracted for the fifth consecutive month in December, as Covid-19 fare-ups across the country continued to weigh on both supply and demand, a Caixin-sponsored survey showed Tuesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 49 in December, down from 49.4 the previous month and remaining below 50 for five months in a row. A reading below 50 indicates a contraction in activity, while a number above that signals an expansion.

“Overall, the pandemic continued to take a toll on the economy in December,” said Wang Zhe, a senior economist at Caixin Insight Group. “But optimism in the sector significantly improved thanks to further optimized Covid controls.”

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