Chinese economy stagnated in April, sharp contraction in service sector

Recently CNN.co.jp reported the following:

中国経済、４月は停滞　サービス部門で急激な縮小

2022.05.06 Fri posted at 17:45 JST

  香港（ＣＮＮ Ｂｕｓｉｎｅｓｓ） 中国の巨大なサービス部門が先月、史上２番目となる急激なペースで縮小したことが分かった。新型コロナウイルス感染拡大抑止のためのロックダウン（都市封鎖）で各企業が打撃を被ったことが背景にある。

英ＩＨＳマークイットが５日に発表した調査結果によると、中国の経済状況の評価に使用される財新サービス業購買担当者景気指数（ＰＭＩ）の４月の数値は３６．２と、３月の４２から低下した。同指数が５０を割り込めば経済は縮小、上回れば拡大とみなされる。

サービス業は中国の国内総生産（ＧＤＰ）の半分以上、雇用の４割余りを占める。先月は製造業も縮小しており、中国経済全体が停滞に陥る月となった。

新型コロナの感染拡大が和らぎ、当局が経済被害の抑え込みに動く中、今月は状況が改善するかもしれない。それでも首都北京の大部分で厳格な制限措置が施行されるなど、エコノミストからは中国のＧＤＰについて第２四半期での縮小を予想する声も出ている。

先月よりサービス業の業績が激しく落ち込んだ月は、湖北省武漢から広がった新型コロナ第１波に見舞われた２０２０年２月しかない。この時のＰＭＩは、前月の５１．８から２６．５に急落していた。

中国企業各社はかねてエネルギーや原材料の価格高騰に苦慮していた。先月は新型コロナ感染拡大によるロックダウンが業務の行き詰まりに拍車をかけた形だ。

Translation

Hong Kong (CNN Business) China's huge service sector was found to have shrunk at the second fastest pace in history last month. The background was that individual company was hit by the lockdown (city blockage) to prevent the spread of the new coronavirus infection.

According to the results of a survey released by IHS Markit in the UK on the 5th, the April figure of the New Service Industry Purchasing Managers’ Index (PMI) used to evaluate the economic situation in China in April was 36.2, decreased from 42 in March. If the index fell below 50, the economy was considered to be shrinking, and if it exceeded 50, it was considered to be expanding.

The service industry accounted for more than half of China's gross domestic product (GDP) and more than 40% of employment. Last month, the manufacturing industry was also shrinking, and the entire Chinese economy was in a stagnation.

The situation might improve this month as the spread of the new corona subsided and authorities moved to curb economic damage. Still, with strict restrictions being enforced in most of the capital, Beijing, economists said they expected China's GDP to shrink in the second quarter.

The only month in which the service industry's performance fell sharply like those that started since last month was February 2020, when it was hit by the first wave of the new corona that spread from Wuhan, Hubei Province. The PMI at this time plummeted from 51.8 in the previous month to 26.5.

Chinese companies had long struggled with rising prices for energy and raw materials. Last month, lockdown due to the spread of the new corona infection spurred a business impasse.

So, in China service industry accounts for more than half of the country’s gross domestic product (GDP). It has shrunk at the second fastest pace in history last month due to city lockdown. Hopefully with the lockdown being relaxed gradually, the PMI will go up again soon.