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China manufacturing sector contracts again in January

Staff Writer | February 1, 2019
The manufacturing purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) inched up from 49.4% in December to 49.5% in January.
China manufacturing
Asia   January’s reading reflected a slight increase in output
Although the print overshot the 49.3% expected by market analysts, this represents the second consecutive month in which the index lies below the 50.0% threshold that separates expansion from contraction in the manufacturing sector.

January’s reading reflected a slight increase in output, while new orders dipped to an over two-year low.

Although export orders—a proxy for global demand—improved in January, it remained below the 50.0%-mark for the eight-consecutive month.

Subdued manufacturing books prompted job creation to decline in January.

Inventories of raw materials improved in January, whereas the supplier delivery time sub-index declined slightly.

Input prices—a reliable leading indicator for inflation—partially recovered from the large decline in December when a fall in oil prices dragged on the sub-index.