Caixin Jan China manufacturing PMI rises to 49.2 as output falls at softer pace
SINGAPORE (ICIS)–Caixin’s China manufacturing purchasing managers’ index (PMI) edged higher to 49.2 in January from 49.0 a month earlier as output fell at a softer pace, the Chinese media firm said on Wednesday.
A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.
The January reading signalled a sixth successive monthly deterioration in operating conditions, Caixin said in a statement.
Output fell at a marginal pace that was the softest in five months, with some companies noting that the easing of COVID-19 containment measures had reduced pressure on operations, it said.
Demand conditions remained relatively subdued overall, and this contributed to a further fall in overall new work, Caixin said.
New export business also contracted further amid reports of relatively weak global demand conditions.
“Since Covid controls were optimized at the end of 2022, China has seen a surge in Covid infections. According to the Chinese Center for Disease Control and Prevention, the numbers of fever clinic visits nationwide and people hospitalized with Covid peaked in late December and early January, respectively, and have declined since then,” said Wang Zhe, senior economist at Caixin Insight Group.
Improving expectations, restoring confidence, increasing income, expanding consumption, and stimulating domestic demand will be among the priorities for the Chinese government, Zhe said.
“There is still uncertainty in how the pandemic will develop, so full preparation should be made to deal with the next wave of the virus,” Zhe added.
China’s official manufacturing PMI released on 31 January crossed to expansionary territory in January at 50.1, from a 34-month low of 47.0 in the previous month as the country relaxed its zero-COVID policy.
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