Quarantine Order Pushes China's Manufacturing Indicators to Decline

The re-introduction of quarantine measures after the number of cases caused a decline in the official manufacturing indicator in China.

It was noted that the quarantine measures taken with the number of cases negatively affected the recovery in the Chinese economy. The official manufacturing indicator in China unexpectedly declined. The official manufacturing purchasing managers index (PMI) declined to 49 in July. Economists expected the index to be 50.3. In June, the index was stated as 50.2. Official non-manufacturing PMI, which covers construction and service sectors, came in at 53.8 in the same period. The expectation for this data was determined as 53.9. In June, non-manufacturing PMI had reached 54.7. The decision to close the outer regions of Wuhan, China, the first country where the quarantine decision was taken due to coronavirus, was recorded. Taking such a measure for the first time since 2020 emphasized how far the country was from post-pandemic normalization.