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By Dr Thomas GITZEL, Chief Economist, VP Bank Group
The Caixin Purchasing Managers' Index for China's manufacturing sector falls from 51.1 to 40.3.
The consequences of the coronavirus in China are becoming increasingly evident. While the official Purchasing Managers' Index plummeted on Saturday, its counterpart for the manufacturing sector published by Caixin shows the same behavior today. One thing is clear: the Chinese economy could be in the midst of a technical recession triggered by the corona virus. With public life almost at a standstill, however, this should come as no surprise. The official purchasing managers' index for the service sector fell more sharply than that for manufacturing.
However, despite all the...
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