China Manufacturing PMI Below Estimates

2025-02-03 01:52 By Farida Husna 1 min. read

The Caixin China General Manufacturing PMI stood at 50.1 in January 2025, less than market consensus and December's print of 50.5.

It was the fourth straight month of growth in factory activity but the slowest in the sequence, as foreign orders shrank for the second month amid rising challenges in global trade policies.

Employment fell the most since February 2024, resulting in a fourth monthly rise of backlogged work.

Conversely, output rose for the 15th month, with its pace of growth accelerating, in line with trend in new orders.

Buying levels rose further, helped by better delivery times, allowing firms to grow stocks of purchases for the sixth month.

On the cost side, input prices stabilized, with supplier discounts offsetting rising raw material costs.

Selling prices dropped at the fastest pace since July 2023.

Finally, sentiment improved.

'The policies introduced since September 2024 have delivered tangible results,' said Dr. Wang Zhe, senior economist at Caixin Insight Group.



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