China's manufacturing sector showed resilience in January, achieving steady factory output and continued growth in the high-tech sector despite a dip in overall activities, official data revealed on Saturday.

The purchasing managers' index (PMI) for the sector fell to 49.3 as some industries entered a traditional seasonal lull and effective market demand remained insufficient, according to the National Bureau of Statistics (NBS).

The figure was down 0.8 percentage points month on month. A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

Despite the overall contraction, factory output continued to expand. The sub-index for production stood at 50.6, indicating steady growth in manufacturing output. However, the new orders index dropped to 49.2, pointing to a slowdown in market demand.

By sector, production and new orders indexes in industries like agricultural and sideline food processing, as well as railway, shipbuilding and aerospace equipment manufacturing, were all above 56, reflecting relatively strong supply and demand.

In contrast, sectors such as petroleum, coal and other fuel processing, as well as automobiles, recorded readings below 50.

Price indicators rebounded in January amid rising commodity prices. The indexes for input costs and factory-gate prices rose to 56.1 and 50.6, up three and 1.7 percentage points, respectively.

The factory-gate price index climbed above the 50 threshold for the first time in 20 months, signaling an overall improvement in pricing conditions, according to Huo Lihui, a chief statistician with the NBS.

Large enterprises continued to provide support, with their PMI at 50.3, remaining in expansion territory. PMIs for medium-sized and small firms fell to 48.7 and 47.4, respectively.

High-tech manufacturing remained a bright spot, with its PMI at 52.0, marking a second consecutive month above what is considered a relatively strong level.

Equipment manufacturing PMI stood at 50.1 in January, also indicating expansion.

Meanwhile, PMIs for consumer goods and high energy-consuming industries dropped to 48.3 and 47.9, respectively.

Business sentiment stayed upbeat, with the index for production and business activity expectations at 52.6, still in expansion terrain. Industries such as agricultural and sideline food processing and food and beverage manufacturing posted readings above 56 for a second straight month, underscoring strong confidence in near-term prospects, the data showed.

Meanwhile, the PMI for the non-manufacturing sector slipped to 49.4, down 0.8 percentage points from December, as weakening momentum in sectors such as construction weighed on overall activity.

The services sector saw a modest slowdown, with its business activity index edging down 0.2 percentage points to 49.5. However, activity remained robust in financial services, capital market services and insurance, where indexes all stayed above 65, indicating high market vitality.

In contrast, the real estate sector continued to struggle, with its business activity index falling below 40, pointing to generally weak conditions.

Despite these softer readings, sentiment among service-sector firms improved.

The index tracking expectations for business activity in the services sector rose 0.7 percentage points to 57.1, suggesting growing confidence in terms of near-term market prospects.

Construction activity weakened more sharply, with the business activity index dropping four percentage points to 48.8, as cold weather and the approach of the Chinese New Year holiday combined to slow production and construction work.

Expectations in this sector also turned cautious, with the construction business activity outlook index falling below the 50 threshold to 49.8, reflecting subdued confidence regarding the industry's short-term outlook.

China continues to face a complex landscape where the imbalance between supply and demand remains pronounced. To address this challenge, China unveiled a comprehensive policy package this month, leveraging fiscal and financial synergy to boost consumption and energize private investment. (Xinhua)

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Last updated: 2026-01-31 HKT 16:04