China Covid: Factory activity shrinks more than expected

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China Covid: Factory activity shrinks more than expected
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Zero-Covid policy and slowing global demand are putting the country's economy under pressure.

A key measure of China's factory activity has further fallen in November, according to official figures.It comes as strict Covid restrictions and weakening global demand weigh on the world's second largest economy.

The non-manufacturing PMI - which measures business sentiment in the services and construction sector, also fell to 46.7 versus 48.7 in the previous month - the lowest reading in seven months.Earlier this month, the government introduced a series of measures to prop up its slowing economy. Last Friday, China's central bank changed its reserve ration for banks which gives lending institutions more cash to extend loans.

Frustration has turned into anger among students and workers over the country's strict zero-Covid policy.

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