Mainland China's manufacturing PMI in January fell to 49.3, unexpectedly returning to the contraction zone. National Bureau of Statistics: Some industries are entering the traditional off-season

In mainland China, manufacturing and non-manufacturing activities unexpectedly returned to the contraction zone last month. The National Bureau of Statistics announced that the Purchasing Managers' Index (PMI) for manufacturing in January dropped to 49.3, a decrease of 0.8 percentage points from the previous month, unexpectedly falling below the 50-point threshold. The manufacturing PMI for December was 50.2, marking a return to the expansion zone after 8 months. Huo Lihui, chief statistician at the National Bureau of Statistics' Service Industry Survey Center, stated that some manufacturing sectors entered the traditional off-season in January, coupled with insufficient effective market demand, leading to a decline in the economic level compared to the previous month. Large Enterprises Remain in Expansion Zone The PMI for large enterprises continues to be above the critical point. The PMI for large enterprises is 50.3, still in the expansion zone, demonstrating ongoing support from large enterprises; the PMIs for medium and small enterprises are 48.7 and 47.4, respectively, down 1.1 and 1.2 percentage points from the previous month, indicating a decline in economic levels. Affected by recent price increases in some bulk commodities, the purchasing price index for major raw materials and the factory price index are 56.1 and 50.6, respectively, up 3 and 1.7 percentage points from the previous month. Notably, the factory price index has risen above the critical point for the first time in nearly 20 months, indicating an overall improvement in manufacturing market prices. From an industry perspective, the purchasing price index and factory price index for industries such as non-ferrous metal smelting and rolling processing, and electrical machinery and equipment have both risen above 55, reflecting an overall increase in raw material procurement and product sales prices in related industries; however, the two price indices for wood processing and furniture, and petroleum, coal, and other fuel processing are both below the critical point. Non-Manufacturing Activity Index Drops to 49.3 The production index is 50.6, above the critical point, indicating that manufacturing production continues to maintain expansion; the new orders index is 49.2, showing a decline in market demand. By industry, the production index and new orders index for agricultural and sideline food processing, and railway, shipbuilding, and aerospace equipment are both above 56%, indicating a rapid release of production and demand; however, both indices for petroleum, coal, and other fuel processing, and the automotive industry are below the critical point, indicating a slowdown in market demand in related industries and a decline in enterprise production. The National Bureau of Statistics also announced that the non-manufacturing business activity index dropped to 49.3 in January, down 0.8 percentage points from the previous month, marking the lowest level since December 2022. In comparison, the non-manufacturing PMI for December was 50.2, returning to the expansion zone and reaching a four-month high. As for the comprehensive PMI output index for January, it is 49.8, down 0.9 percentage points from the previous month, falling below the critical point again