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Economic Buzz: China manufacturing sector growth accelerates in January
02-Feb-2026 08:32
Business conditions in China's manufacturing sector continued to improve at the start of 2026, according to the latest PMI data. The rate of output growth accelerated slightly amid higher new orders, including from overseas customers. Firms hired additional staff to help cope with rising workloads and clear their outstanding orders. Purchasing activity also rose.

That said, business confidence fell to a nine-month low in January, which was partly attributed to concerns around costs. Notably, the latest survey pointed to the strongest rise in expenses for four months, which contributed to the first rise in output charges since November 2024.

The headline seasonally adjusted Purchasing Managers' Index (PMI) ' a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy ' posted above the 50.0 no-change mark for a second straight month in January to signal another improvement in manufacturing sector conditions. At 50.3, up from 50.1 in December, the latest reading indicated a further slight expansion of the Chinese manufacturing sector. This nevertheless marked the fastest rate of growth in three months.

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