Dariusz Kowalczyk

China’s factory sector suffers first contraction in 6 months

China factoryChinese economy suffered a contraction in its factory activity in January as demand for Chinese goods slipped in the domestic as well as overseas markets, a preliminary survey revealed on Thursday.

The flash Markit/HSBC Purchasing Managers' Index (PMI) slipped from 50.5 in December 2013 to 49.6 in January this year, pointing to a pathetic start for the economy in 2014. It was the first time in six month that activity in the country's factory sector contracted.

It may be noted here that a reading of above 50 stands for expansion in a sector, while a reading of below 50 represents contraction.

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