Chinese manufacturing activity slumped to a three-year low in January, as investors await the US non-farm payrolls report
Shilan Shah, senior economist at Capital Economics, says the China Caixin manufacturing PMI paints a much bleaker picture than the official PMI published a day earlier.
With the headwinds from cooling global growth and the lagged impact of slower credit growth set to intensify, China’s economy is likely to weaken further over the coming months.
Chilly econ winter in China as Jan Caixin PMI contracts again. This is more about private sector than the official PMI yesterday. Most likely means layoffs and early shutdowns for Ch New Year. China factory sector contracts at fastest pace in 3 years https://t.co/yrg4F708GK
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The Chinese manufacturing data has come in below expectations this morning, adding to the picture of a slowdown in the world’s second largest economy.