China Caixin PMI Manufacturing dropped to 51.5 in January, down from 53.0, missed expectation of 52.7. That’s also the lowest reading in seven months. Markit said that production and new orders both expanded at notably slower rates at the start of the year. There was fresh decline in new export business. Input costs and output prices both rose sharply.
Wang Zhe, Senior Economist at Caixin Insight Group said: “Overall, the manufacturing sector continued to recover in January, but the momentum of both supply and demand weakened, dragged by subdued overseas demand. The gauge for future output expectations was the lowest since May last year though it remained in positive territory, showing manufacturing entrepreneurs were still worried about the sustainability of the economic recovery. In addition, the weakening job market and the sharp increase in inflationary pressure should not be ignored.”
Released over the weekend, the official PMI manufacturing dropped to 51.3 in January, down from 51.9, below expectation of 51.5. PMP non-manufacturing dropped sharply to 52.4, down from 55.7, missed expectation of 55.1.
