FOREX TradingCharts.com

Financial News: Coronavirus Outbreak Leads To Sharp Fall In China's

Coronavirus Outbreak Leads To Sharp Fall In China's Business Activity

03/03/2020 - 23:56:00 (RTTNews)

(RTTNews) - China's private sector contracted the most in February as company closures and travel restrictions were put in place due to the coronavirus outbreak, survey data from IHS Markit showed Wednesday.

The Caixin composite output index dropped sharply to 27.5 in February from 51.9 in the previous month. A score below 50 indicates contraction.

The index signaled the sharpest decline in total Chinese business activity on record in February.

"While recent supportive policies for manufacturing, small businesses and industries heavily affected by the epidemic have had a more obvious effect on the manufacturing sector, it is more difficult for service companies to make up their cash flow losses," Zhengsheng Zhong, chairman and chief economist at CEBM Group said. The Caixin services Purchasing Managers' Index plunged to 26.5 in February from 51.8 in January. The score was expected to drop moderately to 48.0.

This marked a sharp decline in business activity that was also the first recorded since the survey began over 14 years ago. Firms faced extended company closures after the Chinese New Year and strict travel restrictions.

Total new business received by service providers fell substantially in February, with the pace of decline the fastest in the series history.

Restrictions around travel also impacted firms' ability to source workers, leading a renewed fall in staff numbers in the service sector. Consequently, backlogs of work rose at a substantial pace. Average selling prices were cut for the third month running in February. Further, uncertainty relating to the coronavirus outbreak weighed on business confidence in February. The degree of optimism among service providers was only moderate, having slipped to a survey low.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Consumer Sentiment Drops Much More Than Initially Estimated In March (03 hr(s), 37 min(s), 10 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. deteriorated by much more than initially estimated in t ...Full Story»

U.S. Personal Income Climbs More Than Expected In February (03 hr(s), 57 min(s), 10 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Friday showing personal income in the U.S ...Full Story»

U.S. Personal Income Climbs 0.6% In February (05 hr(s), 40 min(s), 10 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Friday showing personal income in the U.S ...Full Story»

Ireland Retail Sales Fall For Second Month (06 hr(s), 52 min(s), 10 sec(s) ago)
(RTTNews) - Ireland's retail sales declined for the second straight month in February, data fr ...Full Story»

Latvia Retail Sales Growth At 10-Month High (06 hr(s), 58 min(s), 10 sec(s) ago)
(RTTNews) - Latvia's retail sales grew to the highest in ten months in February, figures from ...Full Story»

Austria's Manufacturing Activity Contracts In March (07 hr(s), 26 min(s), 10 sec(s) ago)
(RTTNews) - Austria's manufacturing sector shrank in March as the fallout from the coronavirus ...Full Story»

Iceland Inflation Slows In March (08 hr(s), 29 min(s), 10 sec(s) ago)
(RTTNews) - Iceland's consumer price inflation eased in March after rising in the previous mon ...Full Story»

French Consumer Sentiment Weakens Slightly (08 hr(s), 42 min(s), 10 sec(s) ago)
(RTTNews) - French consumer confidence weakened only slightly in March, survey results from the st ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Drops Much More Than Initially Estimated In March

03/27/2020 - 10:41 AM (RTTNews)
(RTTNews) - Consumer sentiment in the U.S. deteriorated by much more than initially estimated in t ...Full Story>>

U.S. Personal Income Climbs More Than Expected In February

03/27/2020 - 10:21 AM (RTTNews)
(RTTNews) - The Commerce Department released a report on Friday showing personal income in the U.S ...Full Story>>

U.S. Personal Income Climbs 0.6% In February

03/27/2020 - 08:38 AM (RTTNews)
(RTTNews) - The Commerce Department released a report on Friday showing personal income in the U.S ...Full Story>>

Ireland Retail Sales Fall For Second Month

03/27/2020 - 07:26 AM (RTTNews)
(RTTNews) - Ireland's retail sales declined for the second straight month in February, data fr ...Full Story>>

Latvia Retail Sales Growth At 10-Month High

03/27/2020 - 07:20 AM (RTTNews)
(RTTNews) - Latvia's retail sales grew to the highest in ten months in February, figures from ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.