Activity in China's vast manufacturing sector likely remained in contraction in March, though it was set to stabilize slightly from the coronavirus-led collapse that virtually paralyzed the world's second-biggest economy.
BEIJING - Activity in China’s vast manufacturing sector likely remained in contraction in March, though it was set to stabilize slightly from the coronavirus-led collapse that virtually paralyzed the world’s second-biggest economy.
China’s official manufacturing Purchasing Manager’s Index is forecast to rise to 45 in March, from a record low of 35.7 a month earlier, according to the median forecast of 18 economists polled by Reuters. Yet, the pace of business resumptions has been constrained by Beijing efforts to guard against a second wave of infections from abroad. Production levels at China’s small and medium-sized companies, a major employment sector, were at 76% by Saturday, with the rate of workers returning to their posts in the textile, auto, machinery industries varying from 70% to 90%, the vice industry minister Xin Guobin told a press conference on Monday.
The country’s overseas shipments fell 17.2% in January-February from the same period a year earlier, marking the steepest fall since February 2019.
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