China's manufacturing activity gauge expands for export-oriented firms

China’s manufacturing activity improved in January, according to a private survey, a rare encouraging sign for an economy that’s been losing momentum. 

 

The RatingDog China manufacturing purchasing managers index rose to 50.3 from 50.1 in December, according to a statement released on Monday. Economists surveyed by Bloomberg had forecast the gauge would dip slightly to the 50 threshold that separates expansion and contraction.

 

China has seen weakening momentum in the economy in recent months, with few signs policymakers intend to unleash major stimulus as they continue to battle risks tied to local government debt. Beijing may even reduce the national goal for the economy for the first time in four years and President Xi Jinping has already signaled a greater tolerance for slower growth in some regions.

 

 

China’s gross domestic product expanded 5% last year as record exports compensated for cooling private consumption and an unprecedented drop in investment. 

 

The results of the private survey were more bullish the official reading released over the weekend. That poll showed China’s factory activity unexpectedly deteriorated last month after snapping its worst contraction streak on record in December.

 

The private poll tends to reflect activity in smaller and more export-oriented firms. The RatingDog survey results have mostly been stronger than those from the official poll in recent months as exports stayed strong.