China’s manufacturing activity has shown steady growth for the fourth consecutive month, signaling a recovering economy. January’s Caixin PMI reached 50.1, reflecting expansion with increased production and new orders. This positive trend follows government stimulus measures since September 2024. However, official PMI data saw a slight dip due to the Spring Festival holiday.
China’s manufacturing activity expands for fourth straight month
China’s manufacturing activity expanded for the fourth consecutive month in January, indicating that the nation’s economic recovery is gaining momentum, a private survey said on Monday.
Data from media group Caixin showed that the Caixin China General Manufacturing Purchasing Managers’ Index came in at 50.1 in January versus 50.5 in December, above the 50-point mark that separates growth from contraction.
The survey noted that the manufacturing sector remained in expansion territory last month, with factories seeing accelerated production and an increase in total new orders.
Wang Zhe, senior economist at Caixin Insight Group, said a series of stimulus measures introduced since September 2024 have gradually taken effect, propelling the country to achieve the annual economic growth target for 2024.
The Caixin survey results came after the National Bureau of Statistics released the official manufacturing PMI readings, which stood at 49.1 in January, down from 50.1 in December.
The NBS said the manufacturing PMI data in January were influenced by factors such as the Spring Festival holiday and enterprise employees’ returning home for festival reunions.
Credits: TCA, LLC.