China's factory activity likely cooled in December on COVID surge: Reuters poll

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China's factory activity likely cooled in December on COVID surge: Reuters poll
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China's factory activity is expected to have extended declines in December, a Reuters poll showed on Friday, as the end of the country's 'zero-COVID' policy and rising infections began to affect production lines.

BEIJING, Dec 30 - China's factory activity is expected to have extended declines in December, a Reuters poll showed on Friday, as the end of the country's "zero-COVID" policy and rising infections began to affect production lines.

An index reading below the 50-mark indicates contraction in activity on a monthly basis and a reading above indicates expansion. As a result, businesses now have to contend with rising COVID infections in the workforce, leading some analysts to anticipate labour shortages and increased supply chain disruptions.

"Starting this summer, orders reduced by 30%. Autumn and winter should be a pickup season for us, but orders are still reducing - compared to last year, we have 50% fewer orders," he added.

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