China's manufacturing purchasing managers' index (PMI) for January came in at 49.1, a decrease of 1 point from December of the previous year. This reading, below the 50-point threshold, suggests a contraction in factory activity, according to data released by the National Bureau of Statistics (NBS) on Monday.
The PMI is a key indicator of the overall economic health of the manufacturing sector. A score above 50 indicates expansion, while a score below 50 reflects a contraction.
Statistician Zhao Qinghe from the NBS explained that the decline was primarily influenced by the upcoming Spring Festival holiday and the mass return of employees to their hometowns. These seasonal factors typically affect manufacturing operations and labor availability.
The slowdown in the manufacturing sector could have broader implications for China's economic performance in the coming months, particularly as the economy continues to navigate post-pandemic recovery efforts.
Reference(s):
China's Jan. manufacturing PMI contracts on seasonal factors
cgtn.com
