MNI DATA IMPACT: Caixin China Jan PMI Drops To 7-Month Low

The Caixin China PMI for January dropped 1.5 points to 51.5 from the previous month, the lowest level since July 2020, indicating a slower recovery in manufacturing activities, according to publisher Caixin in an email announcement on Monday.

Here are key points MNI highlights:

• The lower PMI was mainly due to decelerated expansion in both supply and demand, as both the production and new-order sub-indices declined to a 9-month and 7-month low respectively.
• Manufacturers surveyed by Caixin said they are impacted by the resurging Covid-19 cases though market demand is still improving.
• External demand is significantly suppressed by the pandemic overseas, as the new export order sub-index fell sharply to the contraction range and hit the lowest level since July 2020.
• Manufacturers are still worried about the sustainability of the economic recovery, with the expectation sub-index registering the lowest level since June 2020.
• Caixin's unofficial PMI, which tracks small and medium-sized manufacturers, compares with the official PMI released on Sunday, which also dropped 0.6 to 51.3 in January from December.