China January Factory Activity Slows

China's factory activity slowed in January, with the manufacturing purchasing managers' index (PMI) falling to 49.3, missing forecasts and indicating a contraction. This decline, reported by the China===National Bureau of Statistics of China, is attributed to insufficient effective market demand and a traditional off-season for manufacturing. The world's second-largest economy is grappling with a persistent domestic consumer slump, a protracted debt crisis in its real-estate sector, and demographic challenges including a shrinking and aging population. Despite robust exports and a historic trade surplus in the previous year, domestic demand remains weak. China's economy grew 5% in 2025, one of its slowest rates in decades. Beijing has pledged 'forceful' measures to boost demand, with new policies expected in March.