The Chinese PMI surprises as contracts for factory activities in January; Industrial profits in December jumped
Workers produce export clothing in overseas markets in Sihong Guoshun Garment Co., Ltd. In the city of Weyiying, Sihong County, City of Suqian, East Chinese Province of Jiangsu, January 2, 2025.
Cost photo | Nurphoto | Getty Images
Factory activities in China in January have unexpectedly decreased, turning the momentum of expansion in the last three months, partly due to the slow season ahead of the Lunar New Year.
The official procurement manager for January was 49.1, are data published by the Central Bureau of Statistics showed on Monday.
The reading was below the estimated Reuters survey of 50.1. PMI was 50.1 in December, while in November it was 50.3. PMI reading above the threshold of 50 indicates an increase in activity, while below that indicates a reduction.
The production PMI is usually milder in January, because migrants workers return to their homes ahead of the Chinese New Year, which falls on January 29, said Hui Shan, a chief economist for China in Goldman Sachs.
The Chinese unchanging PMI, which measures service and construction activities, fell to 50.2 in January, compared to 52.2 in the previous month.
Separately, Chinese industrial profit jumped 11% in December compared to the year earlier. The profit of the company is recovering from a sharp drop of 27% annually in September-which is their biggest drop since March 2020. During the Pandemia of the Covid-19. They fell 7.3% annually in November and 10% in October, as the fall in the real estate sector and bad chances for revenue were still burdened with consumer demand.
Industrial profits are a key indicator of the financial health of factors, utility companies and mine in China.
Year -old industrial profit in 2024. It dropped by 3.3% compared to the previous year, compared to a drop of 4.7% on an annual basis in the first 11 months of last year.
The second largest economy of the world fulfilled the official annual goal of growth last yearIncreasing 5.0%, as a series of incentive measures started. Economists pointed to the growth of industrial production that outweighs sales on a smallemphasizing the power of the offer in the country while domestic demand remained weak.
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