China’s manufacturing activity shrinks – PMI

China’s manufacturing activity shrank for the fourth straight month in January, Reuters reported on Wednesday. The Purchasing Managers’ Index (PMI) in China rose slightly in January to reach 49.2 from 49.0 in December but still below 50.

The latest figures are affected by the Lunar New Year which will start on February 10 this year, as factories may shut earlier and send workers back home ahead of the holiday.

The official non-manufacturing managers’ index rose to 50.7 in January from 50.4 in December, according to data from the National Bureau of Statistics (NBS). The strength in the country’s services industry helped the construction sector amid a slump in the real estate sector.

The PMI measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction.