‘The economy is also bad because of these restrictions apparently.’
China's factory production data fell to a 14 -month low on weak demand for steel, aluminum and other major industrial commodities.
It is understood that the decline was due to the implementation of the Covid-19 blockade in Shanghai for 2 months which disrupted the supply chain, production and consumers.
Data released by the National Bureau of Statistics of China (NBS) showed the producer price index (PPI) in May was 6.4%, down from 8% in April.
It is indirectly the lowest reading since March 2021.
Meanwhile, the consumer price index (CPI) in May was 2.1%, the same as in April although it dropped from expectations of 2.2%.
Among other data readings, the urban unemployment rate rose 6.1% in April, the highest since February 2020 and surpassing the government's target of 5.5%.
As a result, Goldman Sachs has lowered China's 2022 growth forecast to 4%from 4.5%, which is below the country's official target of 5.5%.
Meanwhile, China's cabinet has announced a package of 33 measures covering fiscal, monetary, investment and industrial policies that will help the economy recover.
In addition, Beijing will also take a number of measures including cutting the benchmark borrowing rate to allow for delayed loan repayments to boost economic growth.
