Factory activities in China are at an all-time low; it fell at a record rate in February as manufacturers closed their operations to contain the spread of coronavirus.
The country’s official measure of manufacturing activity – the Purchasing Manager’s Index (PMI) – dropped to 35.7 from 50 in January.
China makes up a third of world manufacturing and is the world’s largest exporter, so its PMI drop at record level is not only the country’s economy but also is impacting other countries negatively.
The current crisis has affected major companies such as Apple, Diageo, Jaguar Land Rover, and Volkswagen, which rely heavily on China’s production and consumer market.
It is expected that China’s economic growth will take a significant hit in the first half of this year because of the impact coronavirus has had on business and spending in the country.
Stock markets around the world fell dramatically last week after a surge in the number of companies warning about the impact of the outbreak on firms.
Marcia Wright, Readers Bureau, Fellow
Edited by Jesus Chan
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