China’s economic recovery continued in January at slower pace as coronavirus outbreak takes toll
- China’s official manufacturing purchasing managers’ index (PMI) fell to 51.3 in January from 51.9 in December
- The official non-manufacturing PMI, which measures sentiment in the service and construction sectors, fell to 52.4 from 55.7
China’s economy recovery continued in January but at a slower pace, as the resurgence of coronavirus in parts of the country took a toll on business sentiment, led by a sharp drop in service sector morale.
December’s reading was below the median prediction of a poll of analysts conducted by Bloomberg, which expected a drop to 51.5.
China’s non-manufacturing PMI – a gauge of sentiment in the services and construction sectors – fell to 52.4 in January, down from December’s reading of 55.7 and well below analysts forecasts of 55.
Within the non-manufacturing PMI, the sub-index for the construction sector fell to 60 in January from 60.7 in December, while the service sector business activities index fell to 51.1 from 54.8.
A reading above 50 indicates growth in sector activity, while a reading below represents contraction. The higher the reading above 50, the faster the pace of expansion.
