China’s manufacturing and services activities shrank further in November to seven-month lows, official data showed, stung by the country’s strict COVID-19 restrictions and rising infections that analysts said will hurt the economy well into 2023, reports Nikkei Asia.
As the coronavirus has spread in China, Beijing has imposed prolonged lockdowns in several places. The clampdowns have hit production at the world’s biggest iPhone factory of Apple in China, and, according to an analyst’s estimate, now impact about a quarter of the country’s gross domestic product.
The stringent COVID-19 measures also stoked rare street protests across many cities over the weekend. Against this backdrop, the official manufacturing purchasing managers’ index (PMI) came in at 48.0 for November against 49.2 in the previous month, the lowest reading in seven months, according to data released by the National Bureau of Statistics (NBS) on Wednesday. Economists in a Reuters poll had expected a PMI of 49.0.