China manufacturing activity in January continues to contract
The official manufacturing purchasing managers’ index was at a score of 49.5 points, higher than the 49.4 points in December.
China’s manufacturing sector continued to contract for the second consecutive month in January as the country remains embroiled in a scathing trade war with the United States (US). The performance was however, better than economists’ expectations.
The official manufacturing purchasing managers’ index (PMI) was at a score of 49.5 points, higher than the 49.4 points in December, data from the National Bureau of Statistics showed on Thursday. Economists in a Reuters poll had expected PMI to come in at 49.3 points for the month.
A reading above 50 points indicates an expansion, while a reading below that shows that the sector is in a contractionary mode.
China’s vice premier Liu He will be meeting US president Donald Trump in his visit to Washington on Wednesday and Thursday for the next round of trade talks targeted to quell the trade spat between both countries.
Both parties have a month’s time before their trade truce deadline is due. Once that is over, US tariffs on hundreds of billions in Chinese exports will increase sharply if both parties have not resolved their problems.
China has been broadly affected by the weakened trade as it copes with slowing domestic demand.
China’s growth for last year slipped to the lowest annual rate since the 1990s while its 2018 fourth quarter growth slowed to the weakest since the global financial crisis, as domestic and foreign demand slackened amid the country’s trade conflict with the US.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
