China’s factory activity slips into contraction as domestic demand weakens
Qabil Ashirov
Read moreFactory activity in China, the world’s second-largest economy, deteriorated unexpectedly in January, underscoring persistent weakness in domestic demand at the start of the year.
Azernews reports that manufacturing activity slowed as subdued internal consumption weighed on output, leading to a contraction in production early in the new year.
Data released on Saturday by China’s National Bureau of Statistics showed that the official Purchasing Managers’ Index (PMI) fell to 49.3 in January from 50.1 in December, slipping below the 50 mark that separates expansion from contraction. The median forecast in a Bloomberg survey of economists had projected the index would remain unchanged at 50.1.
Key sub-indices also pointed to weakening momentum. The new orders index declined to 49.2, while new export orders dropped more sharply to 47.8, signaling softening demand both at home and abroad.
The non-manufacturing PMI, which includes the services and construction sectors, fell to 49.4 in January from 50.2 in December, marking its lowest level since December 2022.
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