Historic decline in China’s industries due to Corona

Manufacturing activity in China declined in February to the lowest level recorded so far for this month, at a time when the world’s second economy is slowing due to the spread of the new Corona virus, the National Bureau of Statistics announced Saturday.

The authorities have taken extreme measures to contain the spread of the Covid-19 epidemic, including restrictions on movement of movement and a “temporary” closure of factories across the country.

Quarantine was imposed on Hubei Province (central), which is an industrial center and where the virus appeared in December.

However, the government encouraged companies to gradually resume work, at a time when there was a decrease in the number of new daily injuries 10 days ago.

The PMI for February fell to 35.7 points compared to 50.0 in January, according to statistics office figures, an indicator that indicates the expansion of activity if it exceeds 50.0 points, and a contraction if it is less than this The limit.

These figures are lower than the median forecast of analysts surveyed by Bloomberg Financial News, at 45.0.

The two sectors most affected, according to the Statistics Office, are the automotive and specialized equipment sectors.

However, the office expressed optimism, explaining that “if the epidemic is reflected more (than expected) on the production and operations of Chinese companies, it seems that it is beginning to be under control, and the impact on production is gradually shrinking.”

Most analysts warn that Chinese economic growth is likely to be severely affected by the health crisis during the first semester, and the figures released on Saturday give an initial glimpse into the extent of the damage the industrial sector will suffer.

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