China reported on Thursday that its production activity shrank for a second consecutive month in January – another sign that the world's second-largest economy is slowing against the backdrop of internal winds and the ongoing trade dispute with the US
Meanwhile, the Chinese PMI for services in January reached 54.7 – better than 538, reported in the previous month, according to official data. The service sector occupies more than half of the Chinese economy and has helped mitigate the impact of the slowing industrial industry.
Despite the better-than-expected figures for PMI, some economists argue that statistics – especially production data – are still a point
"Although the official PMI of production is not weakening as early as January, that the economy has lost momentum at the beginning of the year, "writes Marcel Tielian, senior economist at Capital Economics. in a post-publication note. "PMI data are on the heels of GDP, confirming the deepening of China's slowdown at the end of 2018, which has raised concerns about the depth of its economic malaise and has speculated speculation about whether Beijing will continue to step up its recent measures to stimulate politics, IHS Markit economists said in her report last week, reviewing Thursday's data.
Thursday's announcement suggests an early sign Under China's business in the new year, after several US companies with exposure to the country – such as Caterpillar, Nvidia and Apple – have warned that sales are likely to slow down in 2019
Global investors were prone to China's various economic data for signs of damage caused by the Beijing- Both sides meet in Washington on Wednesday and Thursday for high-level talks in another attempt to smooth their trade-offs.
The conflict between the two economic giants came at a time when China is already slowing down after three decades of revolutionary growth. Last year, the Chinese economy grew by 6.6% – the slowest pace since the age of 28
In the past year, Chinese authorities have stepped up their support for the economy, especially for smaller companies. Analysts expect the government to declare more measures this year, especially for tax cuts, to boost economic activity.