China manufacturing activity in January continues to contract
The official manufacturing purchasing managers’ index was at a score of 49.5 points, higher than the 49.4 points in December.
China’s manufacturing sector continued to contract for the second consecutive month in January as the country remains embroiled in a scathing trade war with the United States (US). The performance was however, better than economists’ expectations.
The official manufacturing purchasing managers’ index (PMI) was at a score of 49.5 points, higher than the 49.4 points in December, data from the National Bureau of Statistics showed on Thursday. Economists in a Reuters poll had expected PMI to come in at 49.3 points for the month.
A reading above 50 points indicates an expansion, while a reading below that shows that the sector is in a contractionary mode.
China’s vice premier Liu He will be meeting US president Donald Trump in his visit to Washington on Wednesday and Thursday for the next round of trade talks targeted to quell the trade spat between both countries.
Both parties have a month’s time before their trade truce deadline is due. Once that is over, US tariffs on hundreds of billions in Chinese exports will increase sharply if both parties have not resolved their problems.
China has been broadly affected by the weakened trade as it copes with slowing domestic demand.
China’s growth for last year slipped to the lowest annual rate since the 1990s while its 2018 fourth quarter growth slowed to the weakest since the global financial crisis, as domestic and foreign demand slackened amid the country’s trade conflict with the US.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile