China Growth Outlook Worsens as Manufacturing, Home Sales Slump
- Factory activity falls to worst level in two years: Caixin PMI
- Slump in home sales deepens even with vows for policy support
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China’s factory activity fell to its worst level since the pandemic’s onset two years ago and a housing slump showed no sign of easing, darkening the outlook for the world’s second-largest economy.
Covid lockdowns are taking a toll on growth, with Morgan Stanley cutting its 2022 forecast to 4.6% from 5.1%, citing China’s “strict adherence” to eliminating infections. Citigroup Inc. economists said gross domestic product growth could take a hit of as much as 0.9 percentage points in the second quarter.