BEIJING–Growth in China’s factory activity slowed to a five-month low in January, according to a private gauge, weighed by subdued overseas demand.
The Caixin China manufacturing purchasing managers index fell to 51.1 in January from 51.5 in December, Caixin Media Co. and research firm Markit said Monday. The reading stayed above the 50 mark that separates expansion in activity from contraction.
Companies surveyed by Caixin reported slower increases in new orders and output in January, while their payrolls fell for the first time since October.
The subindex for new export orders fell into contraction territory, ending three straight months of expansion.
But confidence in the upcoming year’s production outlook was boosted by an easing of the trade tensions between the U.S. and China, Caixin said.
Caixin didn’t say whether its survey reflected the impact of the outbreak of a deadly coronavirus in central China. It said the Chinese economy will be weighed down by the epidemic and the government will have to implement countercyclical policies to support growth.
China’s official manufacturing PMI, released last week, fell to 50.0 in January from 50.2 in December. The gauge hasn’t reflected the impact of the epidemic, the National Bureau of Statistics said.
The Caixin PMI more closely tracks small, private manufacturers, while the official index focuses more on large, state-owned firms. Many Chinese exporters are small and private firms.
The official PMI has a larger sample base, surveying 3,000 manufacturers nationwide, while Caixin polls 500 companies.
–Grace Zhu
(END) Dow Jones Newswires
February 02, 2020 21:37 ET (02:37 GMT)
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