Chinese manufacturing slightly slows in January

China's factory activity grew at a slower pace in January while staffing levels fell at its quickest pace in nearly five years as trade uncertainties increased, a private-sector business survey showed yesterday.

The Caixin/S&P Global Manufacturing PMI slipped to 50.1 in January from 50.5 the previous month, missing analysts' forecasts of 50.5 in a Reuters poll and easing to a four-month low.

But it still just exceeds the 50-point mark that separates growth from contraction.

Regardless, the reading was better than an official survey last week, which showed manufacturing activity had unexpectedly contracted at the start of 2025, keeping calls for more stimulus alive in the world's second-largest economy.

The smaller Caixin survey is believed to focus more on export-oriented companies.

According to the Caixin survey, manufacturing production accelerated in January from December while total new orders increased at its quickest pace since November.

Factory owners reported improved demand and anecdotal evidence suggested that some clients had ramped up orders for stockpiling purposes.

In the face of US President Donald Trump's tariff threats, anecdotal evidence suggested that exporters rushed to load cargo at a major Chinese port before the eight-day Lunar New Year holiday ahead of their potential implementation.

Trump on Saturday ordered 10 percent tariffs on goods from China and a larger 25 percent levy on Canadian and Mexican imports, risking a new trade war that economists say could slow global growth and reignite inflation.

Reuters