<figure id="attachment_3271270" aria-describedby="caption-attachment-3271270" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-3271270" src="https://media.freemalaysiatoday.com/wp-content/uploads/2026/01/13263359-Beijing.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3271270" class="wp-caption-text">China is facing a persistent domestic consumer slump, weighing on activity even as exports remain robust. (EPA Images pic)</figcaption></figure>
BEIJING: China&#8217;s factory activity slowed in January, official data showed 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&#8217; 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 &#8220;insufficient effective market demand&#8221;, as well as a &#8220;traditional off-season&#8221; for certain manufacturing sectors.
December&#8217;s slight uptick at 50.1 had snapped an extended negative streak that began in April.
The world&#8217;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 &#8220;weak domestic demand&#8221;, Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.
&#8220;Economic activity may soften in (the first quarter),&#8221; Zhang said.
Last year, exports represented the &#8220;pillar of growth&#8221;, he said, adding that the sector&#8217;s &#8220;sustainability is very important for the growth outlook&#8221;.
China achieved a historic trade surplus of US$1.2 trillion last year &#8212; a key strong spot as consumer sentiment at home remained subdued.
Beijing has pledged &#8220;forceful&#8221; measures to boost demand in coming years, with some key policies expected to be announced in March with the release of the government&#8217;s newest &#8220;five-year plan&#8221;.
A protracted debt crisis in China&#8217;s vast real-estate sector has discouraged would-be homebuyers from investing in property &#8212; long a key store of wealth.
Complicating the challenges are demographic trends, with a shrinking and ageing population weakening the outlook for a future spending boom.
The country&#8217;s economy grew 5% in 2025, official data showed this month, among its slowest rates of growth in decades.
Leaders are expected to announce a similar growth target for this year at a key annual political gathering in March.

MatchPoint Times

China’s factory activity loses steam in January

A key measure of industrial health, the manufacturing purchasing managers’ index slipped to 49.3 this month.

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