China's private sector expanded at the weakest pace in four months in January on slower increases in manufacturing and services, private survey results from IHS Markit showed Monday.
The Caixin composite output index fell to 52.2 in January from December's 45-month high of 53.5.
Although a reading above 50 indicates expansion in the sector, the latest score suggested the slowest pace of expansion since September.
Manufacturing companies reported a slower growth in output. Services activity growth also eased, but remained solid in January. The services Purchasing Managers' Index dropped to 53.1 in January from 53.4 in December.
"The economy is unlikely to maintain the pace of expansion seen in the fourth quarter of last year given that the manufacturing sector's willingness to restock has declined," Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, said.
"China's economic growth may decelerate after the first quarter of this year," the director said.
China's economy expanded 6.8 percent in the fourth quarter of 2016 on spending, while the full-year growth hit 6.7 percent, the weakest expansion in 26 years.
Data today showed that new business increased at a slower pace at both manufacturers and service providers in January.
Contrasting employment trends were seen in each monitored sector in January, with services companies noting a faster rate of job creation, while manufacturing firms trimmed their staff numbers at a slightly faster pace.
Manufacturers reported a further sharp rise in average input costs during January, despite the rate of increase easing from December's recent peak. Services companies also reported higher cost burdens.
At the composite level, input costs increased at a rate that was the least marked since October 2016.
Average prices charged for Chinese manufactured goods and services continued to increase at the start of the year. Composite output charges rose at the slowest rate since September.
Sentiment towards the 12-month business outlook was strongly positive across both manufacturing and service sectors in January, IHS Markit said.
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