China’s manufacturing PMI faces biggest fall on record in Feb

According to the National Bureau of Statistics (NBS), China’s official manufacturing purchasing manager index (PMI) plunged to a record low of 35.7 in February from 50.0 in January.

Factory output in the world’s second largest economy stood far below the 50.0 no-change mark, indicating a steep contraction in the sector. The coronavirus outbreak, which broke out in China nearly 2 months ago and claimed nearly 3,000 lives so far, was blamed for the major decline in the Chinese manufacturing sector.

NBS data revealed that the sub-index for manufacturing production slumped to 27.8 in February from 51.3 in January. The reading of new orders stood at 29.3, down from 51.4 from a month earlier.

Sub-indices for new import and export orders also declined to 28.7 and 31.9, respectively amid order cancellations and delays in delivery due to China’s lockdown.

Caixin/Markit PMI, a private measure of China’s manufacturing activity, also saw a sharp decline and fell to 40.3 in February from 51.1 in January. This marked the lowest level of expansion since April 2004, the time when the survey began.

The lower figure was mainly attributed to lower production levels amid extended Lunar New Year holiday and the spreading COVID-19. Disrupted supply chains and delivery times also weighed on the country’s factory output for February.