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Shanghai [China], Sept. 1 (ANI): As record heatwaves lead to a surge in China’s electricity consumption, the country’s manufacturing activity has slumped again as recurring COVID-19 outbreaks take a toll on the economy and high electricity demand. stagnant. Factory shutdown.
According to Nikkei Asia, manufacturing activities in China have been halted due to an excessive increase in the use of air conditioners.
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Also, according to the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.4 from 49.0 in July, but was still below the 50-point dividing line between contraction and expansion.
China also avoided an economic contraction in the second quarter earlier, with repeated lockdowns and movement restrictions only exacerbating the country’s ongoing recession.
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Julian Evans-Pritchard, senior China economist at Capital Economics, a British research consultancy, said: “As the push to reopen wanes and the housing market slump deepens, the official purchasing managers’ index shows the economy this month. Momentum has weakened further.” “We continue to believe that the economy will struggle to make significant progress in the coming months.”
The closely watched indicator expanded for the first time in four months before unexpectedly contracting again in July, according to Nikkei Asia.
However, the non-manufacturing PMI, which includes services, slipped to 52.6 in August from 53.8 the previous month.
Several analysts have doubled down on President Xi Jinping’s signature zero-coronavirus policy, which is expected to seek an unprecedented third term at the Communist Party Congress on Oct. 16.
The government has pledged a slew of stimulus measures to boost the slumping economy, while the central bank has cut interest rates, including a mortgage-linked benchmark aimed at lowering the cost of home loans. China’s real estate market, a vital part of the economy, has lurched from crisis to crisis as a wave of bond defaults among indebted developers left a flood of housing developments unfinished.
Meanwhile, China is suffering from a severe drought, and a record heatwave has caused a surge in electricity use for air conditioners. Soaring demand has forced Sichuan province to suspend factory production to keep residential power running.
China’s zero outbreak policy has imposed full or partial lockdowns in major centres, negatively impacting businesses. The country has imposed a tougher lockdown as more coronavirus infections continue to be reported this year.
Due to repeated lockdowns in different parts of the country, many people are unemployed and underemployed, especially in the service sector.
The lockdown affected factory production, supply chains and delayed shipments of goods to the rest of the world, with consumer prices in the country rising 2.5% as demand weakened. (ANI)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
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