China said on Thursday that its manufacturing activity shrank in January for the second month in a row – another sign that the world's second-largest economy faces the domestic headwind and continued trade dispute with the US
Meanwhile, China's PMI for services in January stood at 54.7 – better than the 53.8 in the previous month, according to official figures. The services sector accounts for more than half of the Chinese economy and has helped cushion the impact of a weakening manufacturing industry.
Despite the better-than-expected PMIs, some economists believe that statistics, particularly manufacturing data, remain significant for a slowdown in the Chinese economy.
"While the official manufacturing PMI did not continue to weaken in January, it still suggests that the economy lost momentum earlier this year," wrote Marcel Thieliant, chief economist at Capital Economics the publication of the data.
"PMI data follow GDP figures, confirming a slowdown in China's slowdown in late 2018 Whether Beijing will further strengthen its recent policy stimulus measures," economists at IHS Markit said in a report last week which they predicted the data from Thursday.
Thursday's announcement offers an early assessment After several US companies such as Caterpillar, Nvidia and Apple were engaged in China in the New Year, sales in China in the New Year warned that sales in 2019 are expected to decline.
Global investors have adjusted to the different economic sectors Data on China for signs of damage caused by the wage battle between Beijing and Washington. The two countries will meet in Washington on Wednesday and Thursday for high-level talks to make another attempt to address their trade disparities.
The conflict between the two economic giants came at a time when China's breakneck growth slowed after only three decades. The Chinese economy grew by 6.6 percent last year – the slowest pace in 28 years.
The Chinese authorities have increased support for the economy, especially for smaller companies, over the past year. And analysts expect the government to announce further measures this year, notably tax cuts, to boost economic activity.