Production activity peaked in China in February

Beijing, Ta. February 29 - Saturday

Production activity in China declined at a record pace in February, indicating how much damage China's manufacturing sector has suffered due to the coronavirus. China's Manufacturing Managers' Index (PMI) index, which was 5.1 points in January, fell to a record-high 5.1 in February, according to a report.

Points below 1 are called contractions in that area. However, analysts were expecting February's PMI to be 5.1. China's February production area estimates how the virus affected the coronavirus, the world's second largest economy.

The impact of the Chinese economy on the trade war with the United States in the past has been exacerbated by the virus. In China, economic activities have stalled due to public health measures and control of transportation.

China's economy is projected to hit a major blow in the first quarter of the current year, and this will force Chinese authorities to announce more economic concessions, an analyst said.

Nomura has estimated China's GDP to be two percent, while another agency predicted China's economy to be the weakest in the first quarter after three decades. New orders have also dropped sharply in China. Employment in factories is declining rapidly and staff shortages are being hampered by travel restrictions.

According to the data obtained, only 3% of small and medium-sized companies in China have started their operations. Some of the companies that have started operations are operating at a lower capacity than usual. In China, about 8 percent of the total employment is provided by small and medium-sized companies, and the contribution of these companies to GDP is about 8 percent.