Chinese factory activity sinks, weighing on weak economy

Jul 30, 2022, 9:57 PM | Updated: 10:00 pm
FILE - In this photo released by Xinhua News Agency, workers transfer a half-assembled piano at a p...

FILE - In this photo released by Xinhua News Agency, workers transfer a half-assembled piano at a production factory of Parsons Music Corporation in Yichang, central China's Hubei Province, on Nov. 23, 2021. Chinese manufacturing’s recovery from anti-virus shutdowns faltered in July as activity sank, a survey showed Sunday, July 31, 2022, adding to pressure on the struggling economy in a politically sensitive year when President Xi Jinping is expected to try to extend his time in power. (Xiao Yijiu/Xinhua via AP, File)

(Xiao Yijiu/Xinhua via AP, File)

BEIJING (AP) — Chinese manufacturing’s recovery from anti-virus shutdowns faltered in July as activity sank, a survey showed Sunday, adding to pressure on the struggling economy in a politically sensitive year when President Xi Jinping is expected to try to extend his time in power.

Factory activity was depressed by weak global demand and anti-virus controls that are weighing on domestic consumer spending, according to the national statistics agency and an official industry group, the China Federation of Logistics & Purchasing.

A monthly purchasing managers’ index issued by the Federation and the National Bureau of Statistics retreated to 49 from June’s 50.2 on a 100-point scale on which numbers below 50 indicate activity declining. Sub-measures of new orders, exports and employment declined.

“Downward pressure is great,” said economist Zhang Liqun in a statement issued by the Federation. “The impact of the epidemic is still on the rise.”

The ruling Communist Party has stopped talking about this year’s official economic growth target of 5.5% after output shrank in the three months ending in June compared with the previous quarter.

The slowdown, which raises the risk of politically volatile job losses, adds to challenges for Beijing ahead of a ruling party meeting in October or November when Xi is expected to try to break with tradition and award himself a third five-year term as party leader.

An announcement Thursday by party leaders promised to “strive to achieve the best results” but avoided mentioning the annual growth target announced in March.

The party has promised tax rebates and other aid to help entrepreneurs after anti-virus controls temporarily shut down Shanghai and other industrial centers starting in late March.

The port of Shanghai, the world’s busiest, says activity is back to normal, but factories and other companies are operating under anti-virus controls that limit their workforces and weigh on production.

An index of production tumbled to 49.8 from June’s 52.8. New orders declined 1.9 points to 48.5. New export orders lost 2.1 points to 47.4.

Chinese leaders have avoided large-scale stimulus spending, possibly for fear of reigniting a rise in debt that they worry is dangerously high.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Aslef, Associated Society of Locomotive Engineers and Firemen members are pictured on a picket line...
Associated Press

Driver walkout halts trains as UK summer strike wave spreads

LONDON (AP) — Thousands of U.K. train drivers walked off the job Saturday in a strike over jobs, pay and conditions, scuppering services across much of the country. The action was the latest in a spreading series of strikes by British workers seeking substantial raises to offset soaring prices for food and fuel. The 24-hour […]
5 hours ago
Associated Press

Dutch arrest man linked to currency mixer Tornado Cash

THE HAGUE, Netherlands (AP) — Dutch financial prosecutors say they detained a man suspected of involvement in “concealing criminal financial flows and facilitating money laundering” through the virtual currency mixer Tornado Cash. The 29-year-old man was arrested Aug. 10 in Amsterdam, the financial prosecution service FIOD said in a statement Friday. The suspect’s identity was […]
5 hours ago
Ukrainian Health Minister Viktor Liashko speaks to The Associated Press reporters during an intervi...
Associated Press

Ukrainian minister says Russia blocking access to medicines

KYIV, Ukraine (AP) — Ukraine’s health minister has accused Russian authorities of committing a crime against humanity by blocking access to affordable medicines in areas its forces have occupied since invading the country 5 1/2 months ago. In an interview with The Associated Press, Ukrainian Health Minister Viktor Liashko said Russian authorities repeatedly have blocked […]
5 hours ago
ADDS NAME OF DETAINED PERSON Law enforcement officers detain Hadi Matar, 24, of Fairview, N.J., out...
Associated Press

Author Salman Rushdie on ventilator after New York stabbing

CHAUTAUQUA, N.Y. (AP) — Salman Rushdie, whose novel “The Satanic Verses” drew death threats from Iran’s leader in the 1980s, was stabbed in the neck and abdomen Friday by a man who rushed the stage as the author was about to give a lecture in western New York. A bloodied Rushdie, 75, was flown to […]
5 hours ago
A view of the peninsula of Sirmione, on Garda lake, Italy, Friday, Aug. 12, 2022. Lake Garda water ...
Associated Press

Italy’s Lake Garda shrinks to near-historic low amid drought

SIRMIONE Italy (AP) — Italy’s worst drought in decades has reduced Lake Garda, the country’s largest lake, to near its lowest level ever recorded, exposing swaths of previously underwater rocks and warming the water to temperatures that approach the average in the Caribbean Sea. Tourists flocking to the popular northern lake Friday for the start […]
5 hours ago
FILE - Sen. Kyrsten Sinema, D-Ariz., speaks before President Joe Biden signs the $1.2 trillion bipa...
Associated Press

Sinema took Wall Street money while killing tax on investors

WASHINGTON (AP) — Sen. Kyrsten Sinema, the Arizona Democrat who single-handedly thwarted her party’s longtime goal of raising taxes on wealthy investors, received nearly $1 million over the past year from private equity professionals, hedge fund managers and venture capitalists whose taxes would have increased under the plan. For years, Democrats have promised to raise […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
Chinese factory activity sinks, weighing on weak economy