China manufacturing outlook worsened in January, even before coronavirus outbreak

The Caixin manufacturing purchasing managers’ index (PMI), a survey of small, private producers in China, was 51.1 in January, down from 51.5 in December

China’s industrial profits – the money made by its largest industrial firms – also fell by 3.3 per cent in the whole of 2019 after falling 6.3 per cent in December

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China’s industrial profits – the money made by its largest industrial firms – fell by 3.3 per cent in the whole of 2019. Photo: Reuters

Published: 10:48am, 3 Feb 2020Updated: 6:24pm, 14 Feb 2020

The outlook for China’s small manufacturers worsened in January, ahead of what is expected to be a prolonged economic chill amid the fallout from the coronavirus outbreak.

The Caixin manufacturing purchasing managers’ index (PMI), a survey of small, private producers in China was 51.1 in January, with anything above 50 indicating growth, according to a data release on Monday.

This was a five-month low and was down from 51.5 in December and below the expectations of analysts, which had forecast 51.3.

However, the survey was conducted before the Lunar New Year holiday, during which the spread of the coronavirus became more insidious. Many factories remain shut in China after Beijing ordered an extended holiday period until February 10.

“While the Caixin manufacturing PMI edged down last month, the survey was conducted too early to tell us much about the extent of the economic damage from the Coronavirus outbreak,” said Julian Evans-Pritchard, senior China economist at Capital Economics.

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