China’s factory activity contracts in January on weak domestic demand

South China Morning PostCenter-RightEN 1 min read 100% complete by ReutersJanuary 31, 2026 at 06:07 AM

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China's factory activity contracted in January, according to an official survey released on Saturday, signaling a slowdown in the country's manufacturing sector. The Purchasing Managers' Index (PMI) fell to 49.3, below the 50-point threshold indicating growth, due to weak domestic demand. Sub-indexes for new orders and new export orders also declined. The non-manufacturing PMI, encompassing services and construction, decreased to 49.4, its lowest since December 2022. According to the National Bureau of Statistics, the contraction is partly attributed to a traditional slowdown in manufacturing during January and persistent weak market demand. The data reflects broader economic imbalances, including weakened retail sales and slower GDP growth in the fourth quarter.

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Reuters 50% Huo Lihui 60% National Bureau of Statistics 70% China 90%

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factory activity 90% pmi 80% china 80% domestic demand 70% economic contraction 70% export orders 60% new orders 60% retail sales 50% gdp growth 50% non-manufacturing pmi 50%