INSUBCONTINENT EXCLUSIVE:
Bureau of Statistics said on Wednesday, the lowest reading since April and worse than an estimate of 49 in a Bloomberg survey of
economists.
The non-manufacturing index, which measures activity in the construction and services sectors, declined to 46.7 from 48.7 in
October, also lower than the consensus estimate of 48
A reading below 50 indicates contraction, while anything above suggests expansion.
The economy is suffering increasing damage from
tightened virus controls as Covid outbreaks spread in every province
Major cities like Guangzhou and Beijing have imposed new restrictions in recent weeks to limit movements, and the stringent measures even
sparked protests in several cities.
Economic activity will likely continue to weaken in December and the first quarter of next year,
according to Zhang Zhiwei, chief economist at Pinpoint Asset Management Ltd., adding that a reopening-fueled rebound seems set for the
stocks opened 0.3% lower when the data was released, but then quickly erased that loss to rise 0.3% as of 9:46 a.m
The yuan traded onshore strengthened 0.26% to 7.1389 per dollar, while the yield on 10-year government bonds was little changed at
2.89%.What Bloomberg Economics Says...
Recovery will be slow as China works out ways to live with the virus, but each new sign of economic
weakness is likely to nudge in the direction of loosening Covid Zero
Any new approach will need to strike a delicate balance: boosting economic activity without allowing an unmanageable spread of the
virus.
Road and subway traffic in big cities including Beijing plummeted in the past week, as public venues were closed and residents
recent estimate from Nomura Holdings Inc
cases.
Manufacturing PMI gauges measuring output, new orders, raw material inventories and employment all contracted in November at a
faster pace than the month before
49.6 in October
New orders decreased to 46.4, down from 48.1
A sub-gauge measuring employment dropped to 47.4 from 48.3
An index
government has taken steps to help the economy recently -- including lowering the amount of cash banks must hold in reserves and offering
Greater China at Jones Lang LaSalle Inc
toward the economic roadmap, Covid policy and geopolitical relationships, all of which will help to deliver a gradual economic recovery for
