Chinese business confidence lowest since 2013

China's business confidence has hit its lowest level since at least January 2013 reflecting the impact of surging COVID-19 cases on economic activity and hinting at possible recession next year, a survey by World Economics showed on Monday.

The index fell to 48.1 in December, 2022 from 51.8 last month, showed the World Economics' survey of sales managers at over 2,300 companies conducted Dec 1-16. The index was the lowest since the survey began, Reuters reports.

"The survey suggests strongly that the growth rate of the Chinese economy has slowed quite dramatically, and may be heading for recession in 2023," World Economics said.

The world's second-biggest economy is facing a surge in COVID-19 infections following the abrupt relaxation of strict containment measures, hitting businesses and consumers alike, while a weakening global economy is hurting Chinese exports.

The country's GDP is expected to grow just 3% this year, its worst performance in nearly half a century.

The survey showed business activity fell sharply in December with the sales managers indexes in Manufacturing and Service Sectors both below the 50 level.

"The percentage of companies that claim to be currently negatively impacted by COVID has risen to a survey high, with more than half of all respondents now suggesting their operations are being harmed in one way or another," the London-based data provider said.