China’s Official Manufacturing PMI Slumps to 49.3 in January

China experienced a downturn in factory activity in January as “weak domestic demand dragged down production at the start of the new year”. The official purchasing managers’ index (PMI) fell to 49.3 from 50.1 in December, dipping below the 50-mark indicating contraction. This decline missed the analysts’ forecast of 50.0 in a Reuters poll. Both new orders and new export orders sub-indexes also saw reductions, respectively dropping to 49.2 and 47.8 from their December figures. On another front, China’s non-manufacturing PMI, comprising services and construction sectors, decreased to 49.4 from 50.2 in December, marking its lowest level since December 2022….