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Investing.com — China's manufacturing sector grew as expected in January, a private survey showed on Thursday, as domestic manufacturing continued to show growth in new orders and production as demand modestly improved. .
As expected, the index rose by 50.8 in January, and the pace of growth from the previous month was stable. A number above 50 indicates growth, and Caixin PMI has continued to expand for three consecutive months.
Caixin's survey contrasted with government figures released Wednesday that showed the Chinese economy continued to shrink in January.
However, Caixin's investigation differs from the official investigation in its scope of enterprise investigation, focusing on small private enterprises rather than the large state-owned enterprises that are subject to official investigation. Investors use both surveys to get a clearer picture of China's economy.
Thursday's data was driven by increased production and a modest improvement in external demand, with new export orders also registering a slight increase.
Employment improved in January and businesses also became more optimistic about the year ahead, according to a Caixin survey.
But analysts at Caixin say that despite the positive outlook, China's manufacturing industry remains under pressure from a slow economic recovery and the government needs to take further stimulus measures to support growth. He also pointed out.
“Currently, the economy is grappling with significant challenges, including slowing demand, increasing employment pressures, and subdued market expectations. This current situation has not yet experienced a fundamental reversal,” Caixin Insight Group said. senior economist Wang Zhe wrote in a note.
China's economy is barely above its 5% annual growth target for 2023, with only limited improvement expected in the coming months.
The Chinese government has also remained largely conservative regarding the rollout of further aid. The government has continued to offer further monetary stimulus to boost spending, but so far there has been limited support for the economy, prompting calls for more targeted fiscal measures.
