China's non-manufacturing PMI drops to 49.4 in January

BEIJING, Jan. 31 (Xinhua) -- The purchasing managers' index (PMI) for China's non-manufacturing sector slipped to 49.4 in January, down 0.8 percentage points from the previous month, as weakening momentum in sectors such as construction weighed on overall activity, official data showed on Saturday.

The services sector saw a modest slowdown in January, with its business activity index edging down 0.2 percentage points to 49.5. However, activity remained robust in financial services, capital market services and insurance, where indices all stayed above 65, indicating high market vitality, according to the National Bureau of Statistics (NBS).

In contrast, the real estate sector continued to struggle, with its business activity index falling below 40, pointing to generally weak conditions.

Despite these softer readings, sentiment among service-sector firms improved in January. The index tracking expectations for business activity in the services sector rose 0.7 percentage points to 57.1, suggesting growing confidence in terms of near-term market prospects.

Construction activity weakened more sharply, with the business activity index dropping 4.0 percentage points to 48.8, as cold weather and the approach of the Chinese New Year holiday combined to slow production and construction work.

Expectations in this sector also turned cautious, with the construction business activity outlook index falling below the 50 threshold to 49.8, reflecting subdued confidence regarding the industry's short-term outlook.

Saturday's data also revealed that the PMI for China's manufacturing sector stood at 49.3 in January, down 0.8 percentage points from the previous month. ■