China Caixin PMI Services dropped to 52.0 in January, down from 56.3, missed expectation of 55.5. Markit noted that business activity expanded only modestly amid weaker up turn in sales. Staffing levels increased at slower rate. Input costs inflation accelerated to second-sharpest since early-2012. PMI Composite dropped to 52.2, down from 55.8.
Wang Zhe, Senior Economist at Caixin Insight Group said: “Overall, the manufacturing and services industries continued to recover in January, but the momentum of both supply and demand weakened, dragged by subdued overseas demand. The employment market was under pressure, especially in manufacturing. In addition, we should be careful about rising inflationary pressure in the coming months. This year, we need to keep an eye on the effectiveness of domestic epidemic prevention, and look at how to add momentum to the Chinese economy as uncertainties about overseas demand continue.”
