China’s factory activity contracted in December, according to a private survey, highlighting the economic costs of the country’s abrupt abandonment of its strict zero-Covid regime as it battled a nationwide wave of infections.
The Caixin purchasing managers’ index, a private gauge of operating conditions in China’s manufacturing sector, showed a reading on Tuesday of 49 for December, its lowest level since September and down from 49.4 in November.
China’s official PMI data, released over the weekend, showed a steeper decline in economic activity. Its manufacturing and services gauges came in at 47 and 41.6, respectively, both falling to their lowest levels since early 2020 at the beginning of the Covid-19 pandemic. A reading below 50 indicates a contraction, while one above 50 signals an expansion.