Beijing. Under pressure from China’s strict zero-Covid measures, Chinese industrial sentiment took an unexpected turn for the worse in July. The official Purchasing Managers’ Index (PMI) fell from 50.2 last month to just 49 points, according to the statistics office in Beijing.
A value below 50 points on a key economic indicator indicates a decline in industrial activity in China. Experts had expected a value of more than 50 points, the same as last month.
While the rest of the world is trying to live with the coronavirus, China is maintaining a zero-tolerance policy to prevent any outbreaks in the bud. Economic recovery is faced with drastic measures, which do not work well against the highly contagious omicron variant. In the second quarter, the second largest economy in the world grew by only 0.4 percent compared to the same period last year. That was the weakest reading since the pandemic began.
Actually the government wanted to achieve a growth of 5.5 percent this year, but this seems low and unrealistic. Due to the Covid restrictions and the ongoing real estate crisis in China, experts expect a growth of around four percent.
© dpa-infocom, dpa:220731-99-219342/2 (dpa)