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5d ago

China’s Manufacturing PMI Slips to 49.3, Returning to Contraction

Officials attribute the decline to weak domestic demand with seasonal softness.

An employee works at a steel processing production line at a factory in Hefei, Anhui province, China February 21, 2020. China Daily via REUTERS
China's factory activity is a key measure of industrial health

Overview

  • Official data show the January manufacturing PMI fell to 49.3, down from 50.1 in December and below the 50 threshold for growth.
  • The reading undershot economist forecasts that pointed to roughly 50.0, indicating a sharper-than-expected loss of momentum.
  • NBS statistician Huo Lihui highlighted insufficient effective demand and a traditional off-season, while analysts noted calendar effects from a late Lunar New Year.
  • Exports remained a key support in 2025 as the economy grew 5%, even as domestic spending stayed weak and property-sector strains persisted.
  • Beijing has begun front-loading 62.5 billion yuan for consumer subsidy programs and signaled further demand support, with industrial profits up 5.3% year-on-year in December.