BEIJING (AP) — Chinese factory activity weakened in October as extended COVID-19 restrictions disrupted production and slowed demand, an industry survey said Tuesday, suggesting a weaker economic recovery in the fourth quarter.
In line with China’s official PMI, which contracted last month, declining factory activity weighed on the fragile recovery of the world’s second-largest economy amid a deepening housing crisis and weakening demand.
Supplier times have lengthened and respondents attribute delays in shipments to virus containment measures.
“Existing domestic and foreign environments are confusing and challenging, and the pain points affecting economic progress have increased,” said Wang Zhe, an economist at Caixin Insight Group.
“In particular, the spread of the coronavirus in many regions is seriously restricting and demanding,” Wang said.
Chinese municipal and provincial officials are making no effort to eliminate sporadic COVID outbreaks as winter approaches, temporarily closing sites like Shanghai Disney Resort and imposing longer lockdowns on millions of people.
A sprawling iPhone maker’s Foxconn meetinghouse in central China’s Zhengzhou was rocked by discontent with strict antivirus measures as staff fled the site over the weekend.
As global interest rates rise and the war in Ukraine reduces external demand for Chinese goods, the index of new export orders for the third straight month underscores the risks of trouble for exports.
Caixin’s production PMI focuses on small businesses and coastal regions with several exporters.
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