China's manufacturing PMI drops amid epidemic

CNC
Added On March 1, 2020

The National Bureau of Statistics says the purchasing managers' index (PMI) for China's manufacturing sector stood at 35.7 in February, down from 50 in January.
 
A reading above 50 indicates expansion, while a reading below reflects contraction.
 
A senior NBS statistician said the sharp decline resulted from the impact of the novel coronavirus outbreak.
 
The PMI for industries, including chemical fiber and automobile, were below 30, while that for food and beverages stayed above 42, supported by the government's production and supply guarantee polices.
 
On a month-on-month basis, the sub-index for new orders came in at 29.3, 1.5 points higher than that for production, signaling a relatively good market demand in February.
 
The data released on Saturday highlighted the rising pressure on imports and exports in February, as the sub-indice for new export orders and imports were affected by order cancellations and delays in delivery amid the epidemic.
 
Meanwhile, the purchasing managers' index (PMI) for China's non-manufacturing sector came in at 29.6 in February, down from 54.1 in January.