The Purchasing Managers' Index (PMI) -- a key gauge of manufacturing in the world's second-biggest economy -- came in at 48.0, down from October's 49.2 and well below the 50-point mark separating growth from contraction, according to data from the National Bureau of Statistics (NBS).
China's factory activity fell for the second month in a row in November, according to official data released Wednesday, as Covid-19 lockdowns and transportation disruptions impacted large swaths of the country.
According to data from the National Bureau of Statistics, the Purchasing Managers' Index (PMI) – a key indicator of manufacturing in the world's second-largest economy – was 48.0, down from 49.2 in October and well below the 50-point threshold separating growth from contraction.
Even as infections reached record highs this month, dragging down demand and business confidence, China is the last major economy committed to a zero-Covid strategy of eliminating outbreaks through strict quarantines and mass testing.
"China's purchasing managers' index fell in November, impacted by multiple factors including the wide and frequent spread of domestic outbreaks and the international environment becoming more complex and severe," NBS senior statistician Zhao Qinghe said in a statement.
The figure for November was lower than the 49.0 predicted by Bloomberg analysts.
So far this year, the manufacturing PMI has been in contraction territory for all but four months, as a summer of heat waves was bookended by Covid lockdowns in major cities in the spring and autumn.
Domestic outbreaks in November, according to Zhao, caused "production activity to slow and product orders to fall," as well as "increased fluctuation in market expectations."
During the month, activity at businesses of all sizes fell, with the PMI for small businesses suffering the most, at 45.6.
The non-manufacturing PMI was 46.7 points in November, down from 48.7 points in October, indicating a contraction in activity.
According to Zhao, "the total industry business volume fell significantly" in transportation, lodging, catering, and entertainment, as "some regions saw a relatively large impact from the pandemic."
Despite reporting a better-than-expected 3.9 percent expansion in the third quarter, Chinese leaders have set an annual economic growth target of around 5.5 percent, which many observers believe the country will struggle to meet.
Meanwhile, rare nationwide protests have erupted among a population exhausted by nearly three years of zero-Covid, and authorities have sent mixed signals about abandoning the strategy.
"The virus situation continues to cloud the economic outlook," said Sheana Yue, China economist at Capital Economics, in a note published on Wednesday.
"Most cities have implemented localised lockdowns, similar to those seen in April, which will continue to weigh heavily on service activity," Yue said.
She warned, "there is little upside that might offset the weakness," with a global downturn putting pressure on export-focused businesses in China.
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