Advertisement
China’s factory activity contracted at slower pace in January as coronavirus infections hampered production
- Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 49.2 in January, up from 49 in December
- On Tuesday, China’s official manufacturing PMI rose to 50.1 last month from 47 in December
Reading Time:2 minutes
Why you can trust SCMP
China’s factory activity shrank more slowly in January after Beijing lifted tough coronavirus curbs late last year which helped ease pressure on manufacturers though infections among workers hampered production, a private sector survey showed on Wednesday.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) nudged up to 49.2 in January from 49 in the previous month, but missed expectations in a Reuters poll of 49.5.
The reading marks the sixth monthly contraction in a row as the 50-point index mark separates growth from contraction on a monthly basis.
Advertisement
The data was in contrast to a better-than-expected official survey on Tuesday, which largely focuses on big and state-owned firms, with manufacturing activity swinging back to growth. The Caixin survey centres on small firms and coastal regions, which includes a number of exporters.
“Given differences in the composition of the firms surveyed, the more modest increase in the Caixin index suggests that smaller firms and exporters are facing the greatest headwinds amid weak foreign demand,” said Julian Evans-Pritchard, an economist at Capital Economics.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x