An official survey showed Wednesday that China’s manufacturing activity contracted for the fourth straight month in January, suggesting that the large sector and the broader economy are facing difficulties in regaining momentum at the start of 2024. The official purchasing managers’ index for the manufacturing sector rose to 49.2 points in January from 49.0. In December, driven by higher production but still below the 50 level that separates growth from contraction. This is in line with the average forecast in a Reuters poll of 49.2 points.
The data provides the first official sign of how the world’s second-largest economy will start the new year after a weaker-than-expected post-Covid-19 recovery. The latest survey is also affected by the Lunar New Year, which falls on February 10 this year, when factories may close early and bring back workers. home before the holiday.
“The economic momentum remains weak as deflationary pressures persist,” said Qi Wei Zhang, chief economist at Pinpoint Asset Management. He expected the Chinese central bank to reduce interest rates in the first half of the year to boost domestic demand.
2024-01-31 16:16:09
#Factory #activity #China #shrinking #weak #demand #hampering #economy
