Virus outbreak has crippled car and home sales, interrupted trade and travel. FMTNews China Virus Outbreak
A worker sits at a production line at a microelectronics factory in Nantong, China.
The epidemic and attempts to slow its spread suddenly paralysed China’s economy during that break, forcing consumers to cut spending and stay home, factories to extend their production halt, and trapping millions of people far from where they work. “The bad news is the recovery has been slower than expected, while the good news is that it’s still recovering.”
That’s down from a 5.7% expansion in 2019 and would be the first time it’s contracted in data back to 1998.But even in January, the sector wasn’t looking especially healthy, with the official gauge that tracks sentiment among purchasing managers at industrial firms at 50 for the month, right on the dividing line between expansion and contraction.
Other alternative data, including coal consumption, shipping, electricity usage and migrant worker return rate, all suggest activity remains far below normal for this time of year.Fixed-asset investment outside rural households, a closely watched indicator of construction activity, likely dropped by 2% in the January-February period, the survey showed, in sharp contrast to the 5.4% rise in 2019.
“The contraction in FAI investment may be deeper than that in industrial production, as many firms may need to cut their capex to survive the epidemic,” Nomura Holdings Inc economists wrote in a note in late February.Retail sales growth was already weak, with the 8% expansion in 2019 the slowest pace since 1999.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China sees imported virus cases exceed new local infections for first timeRecent infections are detected in travellers from Italy, US and Saudi Arabia. FMTNews China Italy SaudiArabia Coronavirus Covid19
Read more »
China to cut banks' reserve requirement to combat virus falloutBEIJING: China's central bank said on Friday (March 13) it would cut the reserve requirements for banks, releasing some 550 billion yuan (US$79bil) in liquidity as the country fights to control the economic fallout of the Covid-19 (coronavirus) outbreak.
Read more »
China sends experts, aid to Italy to help virus fightNSTworld: Nine Chinese experts and several tonnes of medical aid have arrived on a special to flight to Italy to help the country fight Europe’s most serious coronavirus outbreak. China covid19
Read more »
KLM to slash up to 2,000 jobs because of virusDutch national airline says existing personnel will also work lesser to ensure 'no other forced retrenchments'. FMTNews KLM Airline Aviation Coronavirus Covid19
Read more »
NZ calls off mosque massacre remembrance over virus fears | The Malaysian InsightIn remembering terrible tragedy, we shouldn't create risk of further harm being done, says PM.
Read more »