The official purchasing manager index fell to a record low of 35.7 points in February. Meanwhile, the number of infected people in China continues to rise.
The widespread coronavirus epidemic is weighing heavily on China’s economy: the country’s industry has plummeted as never before. The official purchasing manager index (PMI) fell in February to a record low of 35.7 points after 50.0 points in January, as the statistics office announced on Saturday.
It is therefore well below the 50 meter mark, from which onward business is signaled. Even at the height of the global financial crisis more than ten years ago, the index had not plummeted so significantly. Analysts interviewed by Reuters had anticipated a drop to 46 points in February. That would have been the lowest level since January 2009. The barometer for the service sector fell to 29.6 points from 54.1 points in January.
The data provide the first official indications of the current state of the Chinese economy and show how severely the virus has hit it. The corona virus meant that goods could not be delivered or were not even produced: factories were temporarily closed, and workers had to stay at home because of the risk of infection.
427 new infections
In China, the number of new infections has meanwhile risen again. On Friday, there were 427 new cases, the National Health Agency said on Saturday. On Thursday, the increase had dropped to 327, the lowest level in over a month. This confirmed a total of 79,252 cases in China. The number of deaths rose by 47 to a total of 2,835. The virus is spreading worldwide: 21 people died in Italy, 889 are infected. There are now almost 60 cases in Germany, 57 in France, 32 in Spain and 7 in Austria.
Outside of China, South Korea is also particularly badly affected, with more than 3,000 people infected. There are now four suspected cases of infection in the United States, among other traceable cases, where it is unclear where they were infected. They were neither in a country with a further spread of the virus, nor were they in close contact with a sick person. Two of the presumably infected live in California, one in Oregon and one in Washington State. The first tests were positive, the virus has not yet been officially confirmed.
In order to curb the spread of the virus, countries are imposing travel restrictions and events are being canceled, such as the recent Geneva Motor Show or the ITB tourism fair in Berlin. More and more companies are feeling the effects, especially the airlines, which are suffering from flight cancellations and fewer travelers. The virus is also leaving its mark on the financial markets: stock exchanges around the world have been plummeting for days.
(APA / Reuters)
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