Sunday, 4 December, 2022

Volkswagen amongst firms hit by Shanghai lockdown

Volkswagen amongst firms hit by Shanghai lockdown

Businesses including Volkswagen (VW) have scaled back their operations in Shanghai, which is being locked down due to a surge in Covid-19 infections.

The German carmaker partially shuttered its factory in the Chinese city on Thursday, citing supply shortages.

More than a dozen companies have suspended plans to list their shares in the major financial centre.

Economists are concerned that a slow down in Shanghai could affect growth in the world's second largest economy.

On Thursday, official data showed that China's manufacturing and services sectors slowed this month at a faster pace than expected.

The National Bureau of Statistics said its purchasing managers' index (PMI) slipped from 50.2 in February to 49.5 in March.

A reading below 50 represents contraction on the 100-point scale.

PMI data is a summary of market conditions gathered through surveying senior executives in key industries about their expectations for a number of factors including new orders, production and employment.

Late on Wednesday, VW said it would partially close its factory in Shanghai due to "lack [of] parts from suppliers".

The carmaker shut the factory earlier this month, when coronavirus infections were climbing in the city, before restarting production 48 hours later.