China’s manufacturing activity shrinks further
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The news: Weak consumer spending has led to China’s factory activity shrinking for the fifth consecutive month in February, Bloomberg reported.
The numbers: China’s manufacturing purchasing managers index (PMI) stood at 49.1 in February, down from 49.2 in January, according to new data from the National Bureau of Statistics. A reading below 50 indicates contraction.
However, the Caixin PMI — a private survey that focuses on smaller firms — improved to 50.9 in the same month.
The context: Manufacturers in North Asia reportedly cut output and new orders last month due to subdued customer spending from China and other markets.
The latest data comes on the heels of the World Trade Organization’s fresh warning that global commerce was performing weaker than expected due to unexpected economic headwinds and the reemergence of protectionism.
While demand remained modest among major economies, shipping had been disrupted as a result of conflict and drought hitting the key waterways of the Red Sea and the Panama Canal.
The source: Bloomberg
