China manufacturing plunges in february amid coronavirus controls

According to recent reports, China's manufacturing sector experienced a significant decline in February due to the ongoing COVID-19 pandemic and the government's efforts to control the spread of the virus.

Here are some key statistics and insights:

  1. Purchasing Managers' Index (PMI): The official PMI, which is a widely watched indicator of manufacturing activity, fell to 35.7 in February, down from 50.0 in January. A reading below 50 indicates contraction.
  2. Factory output: Factory output declined by 13.5% year-on-year in February, according to the National Bureau of Statistics (NBS).
  3. New orders: New orders received by manufacturers decreased by 14.3% year-on-year in February, indicating a significant decline in demand.
  4. Employment: The manufacturing sector shed jobs in February, with the number of employees falling by 1.7% year-on-year.
  5. Supply chain disruptions: The pandemic has caused widespread disruptions to global supply chains, with many factories and ports in China forced to shut down or operate at reduced capacity.

The decline in manufacturing activity is attributed to several factors, including:

  1. Lockdowns and travel restrictions: The Chinese government's efforts to contain the spread of the virus have led to widespread lockdowns and travel restrictions, disrupting supply chains and limiting the movement of goods and people.
  2. Reduced demand: The pandemic has led to a significant decline in global demand for goods, particularly in industries such as electronics and textiles.
  3. Production halts: Many factories in China have been forced to halt production due to the pandemic, leading to a shortage of goods and components.

The impact of the pandemic on China's manufacturing sector is likely to be significant, with many analysts predicting a decline in GDP growth for the country in the first quarter of 2020. However, the Chinese government has taken steps to mitigate the impact, including injecting liquidity into the financial system and implementing policies to support small and medium-sized enterprises (SMEs).