China Manufacturing Activity Expands Slightly as PMI Rises to 50.3 in January

China’s manufacturing sector showed modest improvement at the start of the year, with the RatingDog China General Manufacturing Purchasing Managers’ Index (PMI) rising to 50.3 in January, up from 50.1 in December, in line with market expectations, according to data from S&P Global.

The latest reading signals a mild expansion in factory activity and represents the fastest pace of growth since October 2025. Output growth strengthened slightly, supported by an increase in new orders, including a renewed rise in export demand.

In response to improving order volumes and production levels, manufacturers increased staffing for the first time in three months, although gains remained marginal. Purchasing activity also rose, while supply chain conditions remained stable.

On the pricing front, input cost inflation accelerated to its highest level since September 2025, driven largely by higher metal prices. As a result, producers raised selling prices for the first time since November 2024, signaling renewed cost pressures being passed through to customers.

Despite the operational improvements, business confidence weakened to a nine-month low, reflecting concerns about the broader economic outlook and rising production costs.

Market analysts note that while January’s PMI data points to short-term stabilization in manufacturing activity, lingering cost pressures and cautious sentiment may limit the pace of recovery in the coming months.

Source: S&P Global