(HIS Markit) The Purchasing Managers’ Index, gauging the operating conditions in China’s manufacturing sector, plunged from 50.4 in February to 48.1 in March.
The fall in the index signaled a further deterioration in business conditions, with the pace of decline the quickest since February 2020.
The fall in the manufacturing activity was attributed to the measures put in place to arrest the spread of Covid-19 amid dampened consumer demand.
The ongoing war in Ukraine and rising inflation also weighed on the business situation, with the degree of confidence for the year ahead falling to the lowest in three months in March.
New orders weakened at the fastest rate since February 2020, with companies reporting falling demand both domestically and internationally.
Cost pressures escalated, with input costs and output charges jumping at the sharpest pace in five months.
Delivery times worsened as lead times rose at the fastest since October, reflecting challenges brought by measures to contain Covid-19 cases.
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