China’s Caixin PMI Manufacturing dropped to 40.5 in February, down form 51.1, missed expectation of 45.7. That’s a record low since survey began in April 2004. Markit noted record falls in output, new orders and employment. Travel restrictions led to sharp deterioration in supply chains. But business confidence rose on hopes of output recovering.
Zhengsheng Zhong, Chairman and Chief Economist at CEBM Group said: “The sharp decline was due to stagnant economic activity across the country disrupted by the pneumonia epidemic caused by a novel coronavirus. The supply and demand sides of the manufacturing sector were both weak.”
Released over the weekend, official NBS PMI Manufacturing dropped to 35.7 in February, down from 50.0, worst on record. PMI Non-Manufacturing dropped to 29.6, down from 54.1, lowest since November 2011.
