SINGAPORE (ICIS)--Caixin's China general manufacturing purchasing managers' index (PMI) fell to 51.5 in January from 53.0 in December as business conditions improved at the slowest rate for seven months, the Chinese media firm said on Monday.
Companies signalled softer increases in output and new orders, alongside a renewed decline in new export work, as the coronavirus pandemic weighed on demand conditions, it said in a statement.
A PMI reading above 50 indicates expansion in the manufacturing economy.
The slowdown in output in January was partly driven by a renewed drop in export orders, which fell for the first time in six months.
“Overall, the manufacturing sector continued to recover in January, but the momentum of both supply and demand weakened, dragged by subdued overseas demand," said aid Wang Zhe, senior economist at Caixin Insight Group.
"This year, we should pay attention to the effectiveness of domestic epidemic prevention amid the ongoing pandemic, and look at how to bring new momentum to the Chinese economy as uncertainties over overseas demand continue.”
Interactive by Nurluqman Suratman