MNI DATA IMPACT: China Jan PMI Drops on Virus and Holidays

China's January manufacturing Purchasing Manager Index dropped to 51.3 from 51.9 for the previous month, as the incoming Chinese New Year holiday and the recent virus outbreaks slowed activities, the National Bureau of Statistics said on Sunday. It was the 11th month that the gauge remained above the breakeven 50.

MNI highlights the following key points:

• Production and new-orders dropped 0.7 and 1.3 percentage points to 53.5 and 52.3. Manufacturers in Hebei, Jilin and Heilongjiang provinces reported difficulties in production, procurement and transportations, due to the epidemic, the NBS noted.
• New-export orders and imports slowed to 50.2 and 49.8, 1.1 and 0.6 pp lower than last month, as overseas demand slowed after Christmas, the NBS said.
• The non-manufacturing gauge read 52.4, down from 55.7. The service business activities sub-index was 51.1, down from 54.8.
• The business activities index in accommodation, catering, and sports and entertainment sector fell into the contraction range due to resurging cases of Covid-19. Activities in telecommunications and financial services remained above 60 for the third month.