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The contraction gripping China’s manufacturing sector slowed in May, data showed Tuesday, as some factories gradually resumed work after the easing of strict Covid lockdowns. News Online
The Purchasing Managers’ Index (PMI) — a key gauge of manufacturing activity — edged up to 49.6, officials said, from April’s 47.4, which was the worst reading since early 2020.
However, the reading remained stuck below the 50-point mark separating growth from contraction.
The figures come as Beijing’s zero-Covid policy aimed at stamping out infections with lockdowns and mass testing is challenged by a surge in the fast-spreading Omicron variant.
Dozens of cities, including economic powerhouses Shanghai and Shenzhen, have been either fully or partially sealed off in recent months, prompting warnings of the gouge to growth being made by zero-Covid.
“The recent epidemic situation and changes in the international situation” hit economic activity, National Bureau of Statistics (NBS) statistician Zhao Qinghe said in a statement.
But production of synthetic fibers, rubber and plastic products rebounded in May, as well as auto production, according to the statement.
Zhao noted the price indexes for raw materials were lower than the previous month.
While factory production and demand have improved “the recovery momentum still needs to be strengthened”, Zhao added.
China is the last major economy welded to a policy of mass testing and hard lockdowns to eliminate virus clusters, but the strict curbs have battered businesses.
Covid cases have trended downward in recent weeks and local governments have gradually allowed some firms to resume operations.
The official non-manufacturing PMI rose to 47.8 from April’s 41.9, as retail and transport rebounded.
Financial hub Shanghai has said it will lift most restrictions on June 1 after two months of lockdown, while Beijing has eased some curbs.
The government has offered tax relief and a bond drive to help industries, and President Xi Jinping has previously called for an “all-out” infrastructure push.
But analysts cautioned that growth will remain weak until China eases its rigid virus controls.
Moody’s on Monday lowered its annual growth forecast for the world’s number two economy from 5.2 percent to 4.5 percent.
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Notes from APS Radio News
According to Statista, an award-winning service that compiles and analyzes information for corporations and governments, in the US, for example, the average mortality rate of the virus has been about .07%.
In previous years, that is, when the seasonal flu was being reported, the mortality rate of influenza could be as high as .13%.
It’s been reported that for most age groups the recovery rate has been 99%.
According to Johns Hopkins University, worldwide there were 1 million more deaths from all casues in 2020, compared to 2019.
But, also according to Johns Hopkins, there were about one million more deaths from all causes in 2016, compared to 2015, to name to other years.
A number of critics have said that lockdowns and quarantines have caused far more harm than the virus itself, as, in a number of countries, during the past few years, the number of suicides, instances of drug abuse and domestic abuse have increased markedly, compared to pre-pandemic levels.
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