The purchasing managers' index (PMI) for China's manufacturing sector fell to 49.3 in January, down 0.8 points from last month, as some industries entered a traditional seasonal lull and effective market demand remained insufficient, official data showed on Saturday.
The production workshop of a new energy technology enterprise in Dongjia Economic and Technological Development Zone in Ningde, Fujian Province, February 17, 2025. /VCG
Despite the overall contraction, factory output continued to expand. The sub-index for production stood at 50.6, indicating steady expansion in manufacturing activity.
By sector, production and new orders indices in industries like agricultural and sideline food processing, as well as railway, shipbuilding and aerospace equipment manufacturing, were all above 56.0, reflecting relatively strong supply and demand.
Price indicators rebounded in January amid rising commodity prices. The indices for input costs and factory-gate prices rose to 56.1 and 50.6, up 3.0 and 1.7 percentage points, respectively.
Large enterprises continued to provide support, with their PMI at 50.3, remaining in expansion territory.
High-tech manufacturing remained a bright spot, with its PMI at 52.0, marking a second consecutive month above what is considered a relatively strong level. The development trends of related industries have continued to improve.
Business sentiment stayed upbeat, with the index for production and business activity expectations at 52.6, remaining in expansion territory. Industries such as agricultural and sideline food processing and food and beverage manufacturing posted readings above 56.0 for a second month, underscoring strong confidence in near-term prospects, data revealed.