The activity of Chinese factories has fallen to the lowest level since the start of the Corona pandemic

Activity at Chinese factories dropped to their lowest level in July since the start of the Covid outbreak, data showed Saturday that revealed production was hit by slowing demand, weak exports and bad weather.

The National Bureau of Statistics said the Purchasing Managers’ Index (PMI), a key indicator of manufacturing activity in the world’s second largest economy, fell to 50.4 in July from 50.9 in June.

The PMI indicates a recovery if He’s over fifty, and in shrinkage if it has dropped below.

Analysts said the index did not change between April and June, but fell sharply in July, to its lowest level since February 2020.

The number was worse than expected by several analysts, but is still above the 50 points that separate the recovery from the contraction.

China’s fragile economic recovery faces the risk of the emergence of a delta-mutated coronavirus that threatens to cut holiday consumption over the summer.

“Overall, the Chinese economy continues to maintain the momentum of the recovery, but the pace has slowed,” said Zhao Qinghe, chief expert of the National Bureau of Statistics.

He added that “some companies entered the equipment maintenance phase in July, which, with the impact of extreme weather phenomena such as high temperatures, floods and natural disasters, led to relatively weak manufacturing growth compared to last month.”

Zhao did not provide details on the climate, but floods in central Henan province killed more than 70 people and damaged billions of yuan this month.

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