China’s Factory Activity Shrinks for Sixth Straight Month, Caixin PMI Shows

Activity in China’s manufacturing sector contracted for the sixth consecutive month in January, as surging Covid-19 infections disrupted supply, demand and employees’ ability to work, a Caixin-sponsored survey showed Wednesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 49.2 in January, up from 49 the previous month. A reading below 50 indicates a contraction in activity, while a number above that signals an expansion.

The PMI is one of the earliest available monthly indicators of business activity in the world’s second-largest economy. Manufacturing accounted for 28% of China’s GDP last year, according to government data.