China’s industrial capacity utilization rate fell by 1.5 percent to 74.3 percent in the first quarter of 2023 from the corresponding period in 2022.
The statistic also showed a decrease of 1.4 percent when compared to the last quarter of 2022, according to data from the National Statistics Authority of China.
The ratio of production capacity to actual output is referred to as the capacity utilization rate.
The better the rate, the more an economy is using its resources to produce, hence the greater the rate, the better.
The NSAC statistics also showed that the utility rate for the mining industry fell by 1.8 percent year over year to 75.2 percent in the first quarter of 2023.
During the same period, the utilization rate of the power, heat, gas, and water production and supply industries declined from 1.9 percent to 71.9 percent. A similar decline of 1.4% from the first quarter of 2022 was seen in the manufacturing sector, which was at 74.5.
However, an official indicator revealed that China’s manufacturing activity grew at the quickest rate in more than ten years in February, defying forecasts as production surged following the easing of COVID-19 limitations late last year, according to Reuters.
The manufacturing purchasing managers’ index increased sharply from 50.1 in January to 52.6, surpassing the 50-point threshold that distinguishes growth from contraction in activity, according to China’s National Bureau of Statistics.
The PMI rose to its highest level since April 2012 and above expert expectations of 50.5.
Due to severe COVID-19 lockdowns and ensuing pandemic epidemics, the second-largest economy in the world saw one of its worst years in over fifty years in 2022.
According to official statistics, China expanded by 3% in 2022, which was less than half the 8.1% rate from the previous year.