China’s private manufacturing improves but still contracts — update | So Good News
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A separate measure of China’s manufacturing sector contracted for a third consecutive month in October as Covid-19 containment measures weighed on both output and demand.
Caixin Media Co. And the China Caixin Manufacturing Managers Index rose to 49.2 from 48.1 in September, according to data released by S&P Global on Tuesday.
A reading above the 50 mark indicates expansion in the movement, while a print below it indicates contraction.
The sub-indices for output and total orders remained below 50 for the second and third months, respectively. Demand for consumer and investment goods is at an all-time low, said Wang Zhe, senior economist at Caixin Insight Group.
A measure of new export orders contracted for a third month as overseas demand continued to weaken.
“In many regions, the spread of the coronavirus has significantly constrained both supply and demand. There is still substantial downward pressure on the economy, and the foundation for economic recovery is not yet solid,” said Mr. Wang.
Companies are less willing to hire new employees to fill positions, and the automation of some production lines has given employers reason to limit hiring, so employment opportunities have declined, he said.
On Monday, China’s official manufacturing PMI fell to 49.2 in October from 50.1 in September.
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