The new corona virus hit hard in February in the large Chinese industry. Previously the Chinese government with the strongest contraction figure ever for the purchasing managers index, an important indicator of activity in the Chinese industry, now the figure of market researchers Caixin and Markit has also fallen sharply.
The purchasing managers index of Caixin and Markit was 40.3 last month, compared to 51.5 a month earlier. A position of 50 or more indicates growth, below which shrinkage. Economists generally expected a drop to 46.0. The Chinese government presented its own purchasing managers index for the industry in February this weekend. He recorded a score of 35.7 against 50 in January.
To stop the spread of the corona virus, the Chinese government forced the closure of factories, shops, eateries and cinemas throughout the country. The exact extent of the damage for the second largest economy remains uncertain. The purchasing manager indexes provide a first insight into the impact of the virus on the Chinese economy.
