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- April 30, 2025 4:17 am
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November 2, 2022: On Monday, China’s factory activity decreased in October due to frequent Covid outbreaks, the National Bureau of Statistics added.
The data showed that the official purchase managers’ manufacturing index decreased to 49.2 this month, down from 50.1 in September.
According to economists had expected a print of 50.
Readings below 50 indicate a squeeze in business activity, while figures 50 above reflect growth. The index surveys businesses on operating conditions.
The index has reached less than 50 for six out of 10 months.
Sub-indicators on factory employment, production, recent orders, and supplier delivery time fluctuated in October compared to September.
“The decline in the manufacturing PMI was driven especially by a drop in the new orders sub-index, which points to more helpless future demand,” Nomura’s Chief China Economist Ting Lu said.
He pointed out that the employment sub-index has been in contraction territory for 19 months.
Scattered Covid explosions across the country are prompted tighter controls on business activity.
One of the companies most notably reached is Apple’s supplier Foxconn, which said in the previous week its factory in the city of Zhengzhou had a small cluster of cases.
Although, Chinese financial news magazine Caijing is reporting, citing two Foxconn employees, that rare workers knocked down dormitory isolation barriers and left the factory this weekend.
The report cited one plant employee who said operations were normal, while Covid control policies had changed, which varied implementation over the previous few days.
On Sunday, in an online notice, municipal authorities announced plans to assist workers who want to exit the factory to visit their hometowns.
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