The manufacturing sector in China continued to expand in January, albeit at a slower pace, the latest survey from Caixin showed on Monday with a seasonally adjusted PMI score of 51.5.
That’s down from 53.0, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Chinese goods producers signaled a sustained rise in output during January, to extend the current period of expansion to 11 months. That said, the rate of growth was the least marked since last April and modest. The slowdown coincided with a weaker increase in total new work at the start of the year.
Data indicated this was partly driven by a renewed drop in export orders, which fell for the first time in six months. Survey respondents often cited the resurgence of the COVID-19 virus globally when explaining the reduction.
Stock shortages at suppliers and shipping delays led to a further increase in delivery times for inputs. Furthermore, average vendor performance deteriorated at the steepest rate since last March.