BEIJING: China’s factory activity slowed in January, official data showed on Saturday, missing forecasts after a brief rise into positive territory at the end of last year.

A key measure of industrial health, the manufacturing purchasing managers’ index slipped to 49.3 this month, the National Bureau of Statistics (NBS) said.

The reading fell below the 50-point mark that divides expansions and contractions, also significantly behind the 50.1 forecast by a Bloomberg survey of economists.

NBS statistician Huo Lihui said in a statement that the data reflected “insufficient effective market demand”, as well as a “traditional off-season” for certain manufacturing sectors.

December’s slight uptick at 50.1 had snapped an extended negative streak that began in April.

The world’s second-largest economy is facing a persistent domestic consumer slump, weighing on activity even as exports remain robust.

The decline in factory activity shown Saturday was the result of “weak domestic demand,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.

“Economic activity may soften in (the first quarter),” Zhang said.

Published in Dawn, February 1st, 2026