China's factory PMI drops in February as epidemic hits economy

A worker welds a bicycle steel rim at a factory manufacturing sports equipment in Hangzhou, Zhejiang Province, China, September 2, 2019. /Reuters

Manufacturing activity in China shrank in February, with the official purchasing managers' index (PMI) dropping to 35.7, the National Bureau of Statistics said on Saturday, indicating that the outbreak of novel coronavirus has weighed heavily on broader economic activities.

The figure was down by 14.3 percentage points from 50.0 in January. The PMI for China's non-manufacturing sector came in at 29.6 in February, down from 54.1 in January.

A reading above 50 indicates expansion, while a reading below reflects contraction.