According to a Reuters’ report on October 31, Communist China’s industrial production, tourism, and shipping, hit by weak global demand and Xi’s strict Zero-Covid policy, fell further lower in October.
The official PMI fell to 49.2 from 50.1 in September, which was below the 50-point mark that distinguishes growth from contraction, according to the CCP’ National Bureau of Statistics on October 31. The PMI survey showed weak demand, with the new orders sub-index contracting for the fourth consecutive month, while continued zero-Covid, real estate defaults, and the global recession hit industrial manufacturing and consumer indexes.
Since March 2021, the employment index has been trending downward as the CCP’s factories resorted to cutting wages to reduce costs, fueling fears of a weak labor market and severely impacting consumption and consumer confidence. Official PMIs showed that export orders remain under pressure. Furthermore, the Zero-Covid policy will continue to play a role in confining personal mobility. For this reason, the CCP’s economy will continue to struggle in 2023, according to relevant experts. In addition, the non-manufacturing PMI lowered to 48.7 from 50.6 in September, and the benchmark mainland China index CSI300 and SSEC both fell following the PMI release, with the offshore Yuan falling 0.32% against the US Dollar. Economists expect CCP’s economy will miss its annual growth target of around 5.5%, with the latest Reuters poll forecasting 2022 growth at 3.2%, against the backdrop of the combined factors such as the regime’s relentless Zero-Covid policy, slowing exports, a sluggish real estate market, and the weakening of the Yuan.