China’s official Purchasing Managers’ Index (PMI) declined for the second consecutive month to 50.5 in January, a half percentage point drop compared with 51.0 in December, according to data released by China’s National Bureau of Statistics.
The gauge is inline with market expectations, and suggests that China’s economic momentum continued to slow.
"The decline…could be largely due to the festival effects," writes Liu Li-Gang, chief economist of Greater China at ANZ in a report.
"Historical pattern suggests that China’s manufacturing activities tend to cool down before the Chinese New Year as many migrant workers will return home for a long holiday."
