(IHS Markit) China’s Business Activity Index showed a reading of 51.4 in January, down from 53.1 in December, as measures to slow down the rising Covid-19 cases hurt growth.
Overall new orders rose marginally in January, with the pace of increase the second-slowest since September. The slower gains were attributed to weak external demand, with the export orders down for the first time in four months.
Backlogs rose at a slower pace partly due to trimmed hiring by firms, helping to ease capacity pressures among service businesses.
Inflation eased despite the rate hitting a three-month high, with firms raising charges through higher costs to customers.
Businesses remained optimistic of the 12-month outlook, although the level of positive sentiment was at a 16-month low on Covid-19 concerns and global recovery.
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