China's manufacturing sector hits rough patch: PMI drops to 49.3
China's manufacturing sector just hit a rough patch—January's official PMI dropped to 49.3, signaling contraction.
That's not only lower than December's number but also below what experts expected.
Production index at 50.6
Even with the overall slowdown, factories are still producing at a steady pace (production index is 50.6).
High-tech manufacturing is actually picking up speed, reaching 52.0, while equipment manufacturing held its ground.
But new orders slipped to 49.2 as demand cooled off.
Beijing to roll out new policies in March
Despite fewer new orders and slower GDP growth last year (just 5%), officials like NBS statistician Huo Lihui say companies are still expanding production.
China also posted a massive $1.2 trillion trade surplus to help balance things out.
Keep an eye out—Beijing plans to roll out new policies in March aimed at boosting demand and keeping things moving forward.