China's Economic Activities Plunge in April On Covid Restrictions
- Apr 30, 2022
- Brian Turner
Economic activities in China declined for the second month in a row in April. Construction and services sector showed a deeper decline as Covid Zero policy is enforced in dozens of cities.
China's economic activities fell sharply in April according to the latest data released by the National Bureau of Statistics today.
The Purchasing Managers' Index declined for the manufacturing sector falling to 47.4 in April from 49.5 in March.
A reading above 50 indicates expansion in activities and below shows contraction.
Economic activities shrank for the second month in a row after China implemented Covid Zero policy in several cities.
The sub-index measuring production declined 5.1 percentage points to 44.4 and for new orders fell 6.2 points to 42.6.
The PMI index measuring construction and services declined even deeper to 41.9 in April from 48.4 in March, reaching the lowest since February 2020.