Well under the expected, in at 51.0 for January (51.8 expected)
Markit with the 'key points':
- January sees weaker increases in production and new orders
- Despite rebound in new export business
- Inflationary pressures soften slightly but remain sharp
Comment from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group:
- Lower than the average level in the fourth quarter last year
- The sub-indices for output and new orders both weakened sharply from those in the preceding month
- While stocks of purchases and finished goods both slid into contraction territory
- Manufacturers appear to have become rather reluctant to restock
- Input prices and output charges continued to rise rapidly, but at slower rates than in the previous month
- The Chinese economy maintained stable growth in January. But the sub-indices showed that the current growth momentum may be hard to sustain. We must remain wary of downward pressures on the economy this year"
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This private survey is of a different sample than the official survey, generally smaller firms. The internals of the report are concerning as pointed out:
- sub-indices for output and new orders both weakened sharply from those in the preceding month
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Earlier this week, official PMIs:
- China official January Manufacturing PMI: 51.3 (expected 51.2, prior 51.4)
- China data: January Non-manufacturing PMI: 54.6 (prior 54.5)
