{"id":1791829,"date":"2023-01-01T06:36:18","date_gmt":"2023-01-01T11:36:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1791829"},"modified":"2023-01-01T06:36:42","modified_gmt":"2023-01-01T11:36:42","slug":"december-manufacturing-in-china-contracts-at-fastest-rate-in-3-years","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/december-manufacturing-in-china-contracts-at-fastest-rate-in-3-years\/","title":{"rendered":"China&#8217;s December Manufacturing Industry Contracts at its Fastest Rate for 3 Years"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdecember-manufacturing-in-china-contracts-at-fastest-rate-in-3-years%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1791829&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>According to the National Bureau of Statistics, China&#8217;s official purchasing manager&#8217;s index (PMI), fell to 47.0 in December from 48.0 in November. The 50-point threshold is where you can distinguish between growth and contraction.<\/li>\n<li>This drop was the greatest since February 2020&#8217;s early days of the pandemic.<\/li>\n<li>In a Reuters poll, economists had predicted that the PMI would be 48.0.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107172837\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">On December 30, 2022, a textile factory in Jiangxi Province. Chinese manufacturing activity fell at its lowest point in 3 years in December.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\"> Getty Photos| Visual China Group | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>China&#8217;s factory activity declined for the third consecutive month in December, and at its fastest pace in almost three years. This was due to Covid infections that swept through the country following Beijing&#8217;s sudden reversal in anti-virus measures.<\/p>\n<p>According to the National Bureau of Statistics, the official purchasing manager&#8217;s index (PMI), dropped to 47.0 from 48.0 November. According to Reuters, economists had predicted that the PMI would be at 48.0. The 50-point mark is the threshold that separates growth and contraction on a monthly basis.<\/p>\n<p>This was the largest drop since February 2020, when the pandemic began.<\/p>\n<p>This data provided the first official snapshot of China&#8217;s manufacturing sector since China lifted the strictest Covid restrictions worldwide in December. Airfinity, a UK-based health data company, estimated that Cumulative Infections reached 18.6 Million in December.<\/p>\n<p>Analysts warn that rising numbers of infections could result in temporary labour shortages, as well as increased supply chain disruptions. Reuters reported Wednesday that <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/TSLA\/\">Tesla<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\"><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\"><\/span><\/button><\/span><\/span><\/span> Plan to run a <a href=\"https:\/\/www.cnbc.com\/2022\/12\/24\/tesla-suspends-production-at-its-shanghai-plant-according-to-an-internal-notice-.html\">reduced production schedule at its Shanghai plant in January<\/a>It will continue to reduce its output from this month through next year.<\/p>\n<p>A weakening of external demand due to rising global recession fears and rising interest rates, inflation, and the conflict in Ukraine may further slow China\u2019s exports. This could hurt its vast manufacturing sector and hinder an economic recovery.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\">\n<div>\n<div class=\"Pullquote-quote\">Although (the factory PMI was lower than expected), it&#8217;s difficult for analysts to give a reasonable forecast due to the virus uncertainties of the past month.&#8221;<\/div>\n<div class=\"Pullquote-sourceWrapper\">\n<div class=\"Pullquote-info\">chief economist, Guotai Junan International<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>&#8220;Most factories I know are way below where they could be this time of year for orders next year. A lot of factories I&#8217;ve talked to are at 50%, some are below 20%,&#8221; Cameron Johnson is a partner at Tidalwave, which provides supply chain consulting services.<\/p>\n<p>&#8220;So even though China is opening up, manufacturing is still going to slow down because the rest of the world&#8217;s economy is slowing down. Factories will have workers, but they will have no orders.&#8221;<\/p>\n<p>NBS stated that 56.3% reported being greatly affected by December&#8217;s epidemic, an increase of 15.5 percentage point over the previous month. Most also indicated that they believe the situation will improve.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Are you looking for recovery?<\/h2>\n<div class=\"group\">\n<p>&#8220;While (the factory PMI) was lower than expected, it is actually hard for analysts to provide a reasonable forecast given the virus uncertainties over the past month,&#8221; Zhou Hao, chief economic economist at Guotai Junan International, said the following:<\/p>\n<p>&#8220;In general, we believe that the worst for the Chinese economy is behind us, and a strong economic recovery is ahead.&#8221;<\/p>\n<p>This week, the country&#8217;s insurance and banking regulators pledged to increase financial support for small and large businesses in the catering industry and tourism sector that were hard hit by the Covid-19 outbreak. They also stressed the importance of a recovery in consumption.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107165717\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107165717\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000277293\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107165718-16709817851670981782-27138600916-1080pnbcnews.jpg?v=1670983416&#038;w=750&#038;h=422&#038;vtcrop=y\" alt=\"China will come through the Covid reopening, but it&#039;s going to be a bumpy ride\"   style=\"display:none\"><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The NBS data also showed that the PMI for non-manufacturing, which measures activity in the services sector, dropped to 41.6 in November, from 46.7, marking the lowest reading since Feb 2020.<\/p>\n<p>The official composite PMI (which combines manufacturing and service) fell to 42.6 from 47.1.<\/p>\n<p>&#8220;The weeks before Chinese New Year are going to remain challenging for the service sector as people won&#8217;t want to go out and spend more than necessary for fear of catching an infection,&#8221; Mark Williams, Capital Economics&#8217; Chief Asia Economist, said:<\/p>\n<p>&#8220;But the outlook should brighten around the time that people return from the Chinese New Year holiday \u2013 infections will have dropped back and a large share of people will have recently had Covid and feel they have a degree of immunity.&#8221;<\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/4db8932b7ac3e84e3f64.svg\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to the National Bureau of Statistics, China&#8217;s official purchasing manager&#8217;s index (PMI), fell to 47.0 in December from 48.0 in November. The 50-point threshold is where you can distinguish between growth and contraction. This drop was the greatest since February 2020&#8217;s early days of the pandemic. In a Reuters poll, economists had predicted that &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1791832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[5458,5909,12735,8280,9994,6984,12169,6366,3819],"class_list":["post-1791829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bongino","tag-chinas","tag-contracts","tag-december","tag-fastest","tag-industry","tag-manufacturing","tag-rate","tag-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1791829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1791829"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1791829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1791832"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1791829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1791829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1791829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}