The Buzz | China manufacturing slumps as anti-virus controls bite

China’s manufacturing plunged in February as anti-virus controls shut down the world’s second-largest economy, but companies are confident activity will revive following government stimulus efforts, according to two surveys.

The data add to growing signs of the disease’s cost. Global stock markets have tumbled more than 10% since mid-February as outbreaks in Iran, Italy and South Korea fueled fears the virus will spread.

Chinese factory activity fell at its fastest rate and to its lowest level on record as anti-disease efforts closed factories and disrupted supplies, according to surveys by a business magazine, China’s statistics agency and an industry group.

A monthly purchasing managers’ index released yesterday by Caixin magazine fell to 40.3 from January’s 51.1 on a 100-point scale on which numbers below 50 show activity contracting.

Despite that, business confidence rose to a five-year high after the ruling Communist Party launched efforts to revive industry with tax cuts and other aid, Caixin said.