BEIJING (Pakistan Point News / Sputnik - 31st December, 2022) China's manufacturing Purchasing Managers' Index (PMI) fell to 47% in December and remained below the psychological mark of 50% despite relaxed domestic COVID-19 controls, the Chinese National Bureau of Statistics said on Saturday.
A PMI reading above 50% indicates expansionary business sentiment, while a reading under 50% means that business activity has contracted.
The PMI fell by 1 percentage point in December from 48% in November, the statement said. PMI of large enterprises in December amounted to 48.3%, a 0.8 percentage point fall compared to November, while PMI of medium and small enterprises slowed down by 1.7 and 0.9 percentage points, reaching 46.4% and 44.7%, respectively.
Manufacturing PMI is calculated from five key indicators, including the index of production, the index of new orders, the index of raw materials stocks, the index of employment, and the index of supplies of raw materials. Four out of them decreased by an average of 3.7 percentage points, with the index of raw materials stocks slightly growing by 0.4 percentage points.
China's non-manufacturing PMI slumped to 41.6% in December, down from 46.7% in November, and remained below the threshold of 50% for a third month in a row, the statement said.
In November, China saw a record increase in local COVID-19 outbreaks. Due to the deterioration of the epidemiological situation, the authorities introduced partial lockdowns in some areas while also forcing their residents to undergo PCR testing on a daily basis.
In late December, China announced that it was abandoning its zero-tolerance policy for COVID-19 and preparing to reopen its borders in January.
