China’s economic recovery continued last month but at a slightly slower clip, as the expansion in manufacturing activity was the weakest since May 2020, a Caixin-sponsored survey showed.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, fell to 50.9 in February from 51.5 the previous month, according to a report published Monday.
A number above 50 indicates an expansion in activity, while a reading below that signals a contraction. The February reading showed manufacturing activity has expanded for 10 months in a row; however, the pace slowed for a third consecutive month, reported Caixin.
The breakdown of the PMI showed that both supply and demand in the manufacturing sector rose less rapidly, as the subindexes of total new orders and output declined for a third straight month. Backlogs of work for manufacturers decreased for the first time in nine months, another sign of weak demand.