Last Updated on 2020/12/06
China’s manufacturing activity contracted for the second month in a row in January
The PMI (Purchasing Managers’ Index or the composite index of the manufacturing activity of a country) for January was 49.5, according to data released by the national statistical office, a slightly higher figure than the 49.3 expected by analysts in a Reuters poll, and 49.4 reported in the previous month.
This contraction can be interpreted as another sign of the weakening of the world’s second-largest economy, due to the trade war with the United States and other internal factors.
In December for the first time since July 2016, the Chinese economy began to contract again.
The PMI is an index to monitor the operating environment of economic activities in certain industrial sectors.
A reading above 50 indicates an expansion compared to the previous month, while below this value one enters into a contraction.
On the other hand, the services sector recorded a positive figure, even above expectations, or 54.7 against the forecasted 53.8.
The service sector in China plays a crucial role, accounting for about half of the entire Chinese economy, and has helped limit manufacturing losses.