Corona's re-emergence in the West slowed down China's manufacturing sector activity

Beijing, Ta. 31 December 2020, Thursday

Growth in China's manufacturing sector slowed in December but China leads the manufacturing sector compared to other major countries. China's Purchasing Managers' Index (PMI) for the manufacturing sector, which stood at 7.10 in November, fell to 31.30 in December. A score above 50 is called an extension of that area.

China's manufacturing sector has recovered sharply as a result of strong export orders following the Corona virus shock. But in the West, the corona has led to renewed austerity measures in China's major trading partners, and new cases within China have also affected demand for industrial products, the PMI report said.

The PMI focuses more on the figures of large and government companies. In China, the sub-index for small business activities, which stood at 30.10 in November, fell to 8.30 in December. The sub-index for employment stood at 7.50, up from 2.30 in November. China's economic growth rate is expected to be 2% in 2020. Which will be the weakest of the last three decades. However, the growth rates of other major economies are expected to remain in the negative zone.

Strong demand for auto and communication equipment has resulted in a strong improvement in retail sales in China. Improvements in the service sector in China have also been slow.