China's manufacturing activity contracts in January

By Mucahithan Avcioglu

ISTANBUL (AA) - The manufacturing purchasing managers’ index (PMI) in China fell 2.1% to 49.1 in January, from 50.1 a month earlier, according to data released by the National Bureau of Statistics (NBS) on Monday.

Within the broader PMI figure, the new orders subindex stood at 49.2, down from 51 in the previous month, while the subindex for new export orders fell to 46.4, compared with 48.3 in December.

The construction sector subindex of the non-manufacturing metric decreased to 49.3 in January from 53.2 in December. The industry’s new orders index fell to 44.7, down from 51.4 in the previous month.

A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction.

According to the NBS, the nation's industrial profits decreased 3.3% in 2024 compared to the previous year, with December alone experiencing an 11% increase.

Profits for the year fell 4.6% for government-owned companies and 1.7% for foreign-invested businesses, including those in Taiwan, Hong Kong, and Macau. Profits for private businesses increased by 0.5%.