China manufacturing indicates muted recovery

 
City A.M. Reporter
China’s giant manufacturing sector continued its modest recovery in January, according to official data out this morning, although growth slowed over the month.

China’s official purchasing managers’ survey (PMI) released this morning showed that factory output at the world’s second-largest economy rose in January, but at a slower pace than the month previously.

The index edged down to 50.4, below market forecasts and slightly below December’s reading of 50.6.

The 50 level separates growth from contraction.

However, a private PMI survey from HSBC showed manufacturing growth rising to a two-year high of 52.3 in January, as domestic demand boosted business.

Both surveys showed manufacturers were helped by firm domestic demand, but buffeted by lacklustre foreign demand as shoppers in the US and Europe, the two biggest buyers of Chinese exports respectively, cut back spending.