[ad_1]
Reuters
expressive image
Chinese businesses and the economy have come under increasing pressure in the past month, with factory activity increasing at a slower pace while the service sector shrinks amid Corona virus restrictions and rising prices for raw materials.
The world’s second-largest economy has experienced an impressive recovery from a crisis caused by the Corona virus, but growth has recently shown signs of slowing due to local outbreaks of Covid-19, which have slowed exports, along with stricter measures to reduce real estate prices and campaign to reduce carbon emissions.
Data from the National Statistics Office today, Tuesday, showed that the official manufacturing purchasing managers index reached 50.1 points in August 2021, while the index stood at 50.4 points in July 2021.
The fifty point level is a boundary between growth and contraction.
Julian Evans-Pritchard, chief economist for China at Capital Economics, said in a note: “Latest surveys indicate that the Chinese economy contracted (in August), as disruptions triggered by the virus severely affected service activity. The industry has also continued to lose momentum. With growing bottlenecks in the supply chain and declining demand. “
And in a worrying sign of the slow recovery in consumption in China, a measure of service sector activity fell in August 2021, entering a cycle of severe contraction for the first time since the epidemic peaked in February of last year.
Data from the Office for National Statistics showed that the official PMI for the non-manufacturing sector reached 47.5 points in August 2021, down significantly from 53.3 points last July.
The Manufacturing Purchasing Managers Index showed a sharp drop in demand, with new orders falling and a measure of new export orders falling to 46.7 points, the lowest level in over one year.
Source: Reuters
[ad_2]
Source link
