China’s manufacturing activity unexpectedly declined for a second straight month in January, underlining the need for Beijing to step up economic stimulus as US President Donald Trump slaps tariffs on the country’s exports.
The Caixin manufacturing purchasing managers’ index (PMI) fell to 50.1, the lowest in four months, from 50.5 in December, according to a report released by Caixin and S&P Global on Monday.
While any reading above 50 indicates an expansion of activity, the figure was well below the median forecast of 50.6 by economists surveyed by Bloomberg.
“The major challenges stemmed from a notable drop in employment, sluggish external demand and weak price levels,” said Wang Zhe, senior economist at Caixin Insight Group, in a statement accompanying the release.
“Rising uncertainty in international policies could worsen China’s export environment, posing significant challenges for the economy.”
02:26
Trump to hit Mexico, Canada with 25% tariffs on February 1
Trump to hit Mexico, Canada with 25% tariffs on February 1
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