![]() This week, among smaller cities tightening Covid controls, the city of Zhengzhou ordered residents to work from home and for schools to move online through the end of Tuesday. While Shanghai's prolonged lockdown experience could help other cities better organize food and medical services, the EIU's Su said that local governments with poor finances would find it difficult to maintain the zero-Covid policy without transfers from the central government. When contacted Wednesday by CNBC, P&G said it did not have an update to share. The company said the market for its products in China didn't grow in value in the first three months of the year, and that "with the continued lockdown and difficulties in the market, we would expect April to be flat to negative." "Even online shopping is significantly constrained due to the inability to deliver." Lockdowns are affecting "consumers' ability to reach stores, grocery stores, department stores," American household products giant Procter & Gamble said in an earnings call last month. But retail sales fell in March, while unemployment in the country's biggest cities set a new high for the pandemic so far. "Lack of confidence in the private sector will drag investment and employment, which will take a much longer period of time to restore even if China introduces more stimulus," she said.Ĭhina reported better-than-expected first quarter GDP growth of 4.8% from a year ago. "During lockdowns, residents only consume daily necessities, so consumption will inevitably slump, not to mention that price could easily triple during city-level lockdowns," said Yue Su, principal economist at The Economist Intelligence Unit. With China's two largest cities by GDP under Covid controls for the five-day holiday that ended Wednesday, national tourism revenue for the period only recovered to 64.68 billion yuan ($9.95 billion) - 44% of pre-pandemic levels, official figures showed. The capital city of Beijing began tightening travel and business restrictions toward the end the month to control a spike in Covid cases. Shanghai, China's largest city, essentially remained locked down for all of April. However, the length of restrictions has varied greatly by region. Manufacturing areas from the northern province of Jilin to the southern city of Shenzhen were among those initially forced to lock down. Since March, mainland China has faced its worst Covid outbreak since early 2020 - using the same zero-Covid strategy of swift lockdowns that had helped the country quickly return to growth back then. He expects a drop in power generation in April. Power generation rose in the first two months of the year, but slowed to zero growth in March, according to figures cited by Larry Hu, chief China economist at Macquarie. Other data depict a similarly broad impact from Covid restrictions in China. ![]() But there were "some concerns over how long it may take to fully contain the virus and to return to more normal business conditions." That's far below the 50 line that indicates contraction or expansion.Įxpectations for future output did improve slightly, a press release said. The Caixin services PMI out Thursday was the latest release, with a drop to 36.2 in April. ![]() Official and third-party versions of the survey, known as the purchasing managers' index, pointed to further contraction in business activity from March. Personal Loans for 670 Credit Score or LowerĪmong Chinese businesses, monthly surveys released in the last week showed sentiment among manufacturing and service businesses fell in April to the lowest since the initial shock of the pandemic in February 2020. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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