China's manufacturing PMI fails to meet expectations but post-holiday sentiment upbeat

The Chinese manufacturing sector's purchasing managers’ index fell to 49.1 percent in January, down by 1 percentage point from the previous month. This figure, which falls below market expectations of 50.1 percent, indicates a decline in manufacturing activity.
Meanwhile, the composite PMI output index reached 50.1 percent, reflecting sustained overall growth in China’s economic output.
Zhao Qinghe, a senior statistician at the National Bureau of Statistics, attributed January’s PMI decline to such factors as the upcoming Lunar New Year holiday and a synchronous surge in workers returning to their hometowns having an effect on manufacturing activities.
Despite the decline, Zhao noted a significant rebound in expectations for post-holiday economic performance.
The production and business activity expectation index rose to 55.3 percent, up by 2 percentage points month on month, signifying manufacturing enterprises' stronger confidence in post-holiday market prospects.
By industry, sectors including railway, shipbuilding, aerospace equipment, and electrical machinery showed particularly strong optimism, with expectation indices surpassing 60 percent, suggesting heightened confidence in future market developments.
JUNE CHEN