China's manufacturing sector expanded at the slowest pace in seven months in January amid a slowdown in output and new orders growth, survey results from IHS Markit showed Monday.
The Caixin manufacturing Purchasing Managers' Index fell to 51.5 in January from 53.0 in December. A reading above 50 indicates expansion.
The slowdown in manufacturing is not surprising given that output was already well above trend - capacity utilization rates in industry hit an eight-year high last quarter, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said. Despite the slowdown, activity will remain strong in the near-term.
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