Caixin’s Sept China manufacturing PMI falls to 48.1 on COVID-19 curbs

Nurluqman Suratman

30-Sep-2022

SINGAPORE (ICIS)–Caixin’s China manufacturing purchasing managers’ index (PMI) fell to 48.1 in September from 49.5 in August as efforts to contain the COVID-19 virus weighed on both output and new orders, the Chinese media firm said on Friday.

A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.

A key factor driving the headline index lower was a faster fall in new orders during September, with new business falling for the the second month in a row and at the quickest rate since April, it said in a statement.

Disruptions to operations due to COVID-19 restrictions, including temporary closures, alongside softer customer demand led to the first fall in output for four months in September.

Subdued demand conditions and lower production requirements led firms to cut back on their purchasing activity in September, with the rate of decline the quickest in four months.

“Measures to contain the COVID-19 virus also weighed on supplier performance in September. Though only modest, the rate at which lead times lengthened was the most pronounced for three months,” Caixin said.

“Cost pressures continued to ease in September, with a number of firms commenting that market prices for some materials had fallen due to weaker demand,” it said.

Concerns over potential repeated outbreaks of COVID-19 and the prolonged use of containment measures weighed on optimism towards future output, the firm added.

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