China’s factory activity slowed in January due to declining export orders ahead of additional US tariffs that are set to come into effect on Tuesday. The Caixin/S&P Global manufacturing purchasing manager’s index came in at 50.1, missing expectations and Reuters’ forecast of 50.5.
The slowdown was partly due to a decline in overseas demand for consumer goods, which has weakened domestic orders. However, China’s domestic demand improved slightly. Manufacturing PMI stayed above the 50 level that separates expansion from contraction but decreased from 50.5 in December and 51.5 in November.
US President Donald Trump signed executive orders to impose 10% tariffs on Chinese goods, starting Tuesday, which is expected to further pressure the economy. China’s Commerce Ministry has pledged to challenge the US decision at the World Trade Organization, condemning it as a “serious violation of international trade rules.”
Source: https://www.cnbc.com/2025/02/03/chinas-january-factory-growth-misses-expectations-ahead-of-us-tariffs-caixin-pmi-shows-.html