China’s economy continued to slow at the start of the year, with manufacturing output slipping and COVID-19 outbreaks curbing consumer spending.
The official purchasing managers’ surveys released on Sunday showed a moderation in factory production and services in January. Small businesses bore the brunt of the pain, with a separate private index dropping to its lowest in almost two years.
The disruptions add to the woes facing the Chinese economy, with home sales falling and consumption sluggish due to tightened restrictions to contain the spread of the highly-contagious omicron virus variant. Beijing is seeking to stabilize the economy ahead of a key political leadership meeting later this year, with the central bank already cutting interest rates and officials pledging more fiscal support.