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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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.