The negative impact of the coronavirus outbreak on the logistics and supply chain in most parts of China likely induced a sharp contraction in the country’s vast manufacturing sector this month, the latest Reuters poll of economists showed on Friday.
“China’s official manufacturing Purchasing Manager’s Index (PMI) is forecast to fall sharply to 46 - a level not seen since January 2009 - from 50 a month earlier.
Official data showed that production levels at China’s small and medium-sized companies, a major employment sector, were just 32.8% by Wednesday, while a majority of migrant workers - including those in Hubei - are yet to resume work.
The private-sector Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) due on Monday - which analysts say focuses more on smaller export-driven firms - is also expected to show a similar contraction at 45.7, compared with an expansionary 51.1 in January.”
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