China’s NBS Manufacturing PMI fell -1.0 pt to 49.1 in January, below expectations of it remaining unchanged and a 5-month low. Production gains at the end of 2024 were flipped to a slight deterioration at 49.8 as a result of a similar trend of domestic new order growth falling back to a decline at 49.2. New export orders declined at the sharpest pace since February 2024, compounding the demand pain. Employment remained in a contraction, where it had been for all of 2024. Despite weak demand, expectations for production increased 2.0 pts to 55.3, the highest since March 2024.

China’s NBS Non-Manufacturing PMI also fell, down -2.0 pts to 50.2 with the Construction PMI down -3.9 pts to 49.3, the lowest since the series started in 2021, and the Services PMI down -1.7 pts to 50.3. Business activity growth slowed to a near halt at 50.2. Domestic and foreign demand both were in sharp declines at 46.4 (down -2.3 pts) and 44.6 (down -5.4 pts) respectively.

In the end, the NBS Composite PMI, signaling general Chinese growth, eased to 50.1 in January which is a decline of -2.1 pts to a 5-month low.