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China’s factories are reeling from the coronavirus outbreak.
Manufacturing activity in the country fell to record lows last month, according to a closely watched private survey. The media group Caixin said Monday that China’s manufacturing purchasing managers index sank to 40.3 in February, down from January’s 51.1 and the lowest reading since the survey began in 2004. It was also well below the 45.7 that analysts polled by Reuters expected.
The Caixin survey came days after the Chinese government reported that its official manufacturing PMI plunged in February to an all-time low of 35.7, down from January’s reading of 50.
The official non-manufacturing PMI survey, which measures the services sector, skidded to 29.6 in February from 54.1 in January. Caixin’s services survey will release later this week.
What this means: A reading above the 50-point level indicates growth compared to the previous month, while anything lower shows a contraction.
Shutdown impact hits: A government-imposed factory shutdown weighed heavily on the manufacturing sector’s performance, according to Caixin, which also said that travel restrictions hurt the labor market and left firms struggling to fill roles last month. Production, new orders and staffing levels all fell at the quickest rates on record.
The media group also said supply chains took a big hit, adding that average delivery times for goods increased at a record pace.
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