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FX.co ★ China's manufacturing sector contracts

China's manufacturing sector contracts

China's manufacturing sector contracts

Chinese manufacturing PMI fell in the month of January, the National Bureau of Statistics of the People's Republic of China (NBS) said. This fact fueled market concerns that the country’s economy is slowing down. The index declined to 49.4 in January from 49.7 in December and below November’s fall to 49.6. The Wall Street Journal analysts had expected a decrease to 49.6. The PMI reading has been below the 50 threshold which separates contraction from expansion for more than six months. At the same time, Chinese stocks have been falling in price. A separate manufacturing PMI gauge from Caixin Media and Markit Economics showed that the index came in at 48.4 last month, up from 48.2 in December. However, this means contraction of manufacturing activity amid falling demand. The official index for the services sector edged up to 53.5 in January from 54.4 in December.

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