China’s manufacturing activity growth slips to lowest level since May

China’s factory activity expanded at the slowest pace in nine months in February as weak overseas demand and coronavirus flare-ups weighed on output, adding pressure on the country’s labour market, a business survey showed on Monday.

The slowdown in the manufacturing sector underscores the fragility of the ongoing economic recovery in China, although domestic coronavirus cases have since been stamped out and analysts expect a strong rebound in full-year growth.

February also saw the Lunar New Year holiday, when many workers return to their hometowns, although this year saw far fewer trips amid coronavirus fears.

The Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 50.9 last month, the lowest level since May.