The last time both PMI indexes simultaneously were below the 50-point mark that separates contraction from growth was in February 2020, when authorities were racing to arrest the spread of the coronavirus, first detected in the central Chinese city of Wuhan.
The world's second-largest economy revved up in January-February, with some key indicators blowing past expectations, but is now at risk of slowing sharply as authorities restrict production and mobility in Covid-hit cities, including Shanghai and Shenzhen. "Recently, clusters of epidemic outbreaks have occurred in many places in China, and coupled with a significant increase in global geopolitical instability, production and operation of Chinese enterprises have been affected," said Zhao Qinghe, senior NBS statistician.
