SHENZHEN/BEIJING, China (Jan 31): China's factory activity faltered in January as weak domestic demand dragged down production at the start of the new year, an official survey showed on Saturday. The official purchasing managers index (PMI) dropped to 49.3 in January, from 50.1 in December, below the 50-mark separating growth from contraction. The non-manufacturing PMI, which includes services and construction, dropped to 49.4 from 50.2 in December, falling to its lowest since December 2022. The world's second-largest economy hit the government's official growth target of 5% last year, underpinned by strong exports that defied pressure from US President Donald Trump's tariff offensive. Signs of unease are growing among policymakers as the domestic demand downturn persists.

Source: The Edge Markets January 31, 2026 04:07 UTC