China Caixin PMI Manufacturing dropped from 50.9 to 49.1 in January. That’s the worst reading in 23 months. Also, the index slumped into negative territory for the fourth time since February 2020.
Wang Zhe, Senior Economist at Caixin Insight Group said: “From December to January, the resurgence of Covid-19 in several regions including Xi’an and Beijing forced local governments to tighten epidemic control measures, which restricted production, transportation and sales of manufactured goods. It became more evident that China’s economy is straining under the triple pressures of contracting demand, supply shocks and weakening expectations.”
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