China’s purchasing managers’ index (PMI) fell to 49.1 in January, marking a contraction and underscoring economic challenges. The data suggested slowing factory activity ahead of the Lunar New Year, amid structural headwinds and tariff threats. December profits surged, but January saw a decline, extending losses to three consecutive quarters. Despite a slight recovery in December, the overall trend remains negative. Policymakers face difficulty maintaining growth as stimulus measures may be rolled out later this year due to weak domestic demand and supply-side challenges.
Source: https://www.cnbc.com/2025/01/27/china-pmi-surprises-as-factory-activity-contracts-in-january-december-industrial-profits-jump-.html