Data released by the Chinese Logistics Union on Monday morning showed that manufacturing activity in China has witnessed a noticeable slowdown during January, while non-manufacturing activity in China also experienced slower growth.
According to the data, China recorded a contraction in the Manufacturing Purchasing Managers' Index (PMI) at 49.1 points during December, which came in lower than market expectations that indicated it would reach 50.1 points. The previous reading had indicated growth at 50.1 points during last December.
At the same time, data from the Chinese Logistics and Purchasing Union indicated that the Purchasing Managers' Index for non-manufacturing activity in China also saw a slowdown in growth during January, recording 50.2 points, significantly below market expectations which predicted growth to 52.1 points. The December reading had been 52.2 points.
It is worth noting that when the PMI index records a reading above 50 points, it indicates growth in the sector's activity, whether manufacturing or non-manufacturing, while a reading below 50 indicates a contraction in the sector's activity.
