Economic Watch: China's manufacturing industry shows resilience as output, high-tech sector remain in expansion

BEIJING, Jan. 31 (Xinhua) -- China's manufacturing sector demonstrated resilience in January, achieving steady factory output and continued growth in the high-tech sector despite a dip in overall activities, official data revealed on Saturday.

The purchasing managers' index (PMI) for China's manufacturing sector fell to 49.3 in January as some industries entered a traditional seasonal lull and effective market demand remained insufficient, according to the National Bureau of Statistics (NBS).

This figure was down 0.8 percentage points from the previous month. A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

Despite the overall contraction, factory output continued to expand. The sub-index for production stood at 50.6, indicating steady growth in manufacturing output. However, the new orders index dropped to 49.2, pointing to a slowdown in market demand.

By sector, production and new orders indices in industries like agricultural and sideline food processing, as well as railway, shipbuilding and aerospace equipment manufacturing, were all above 56.0, reflecting relatively strong supply and demand.

In contrast, sectors including petroleum, coal and other fuel processing, as well as automobiles, recorded readings below 50, suggesting weakening demand and softer production.

Price indicators rebounded in January amid rising commodity prices. The indices for input costs and factory-gate prices rose to 56.1 and 50.6, up 3.0 and 1.7 percentage points, respectively.

Notably, the factory-gate price index climbed above the 50 threshold for the first time in 20 months, signaling an overall improvement in pricing conditions, according to Huo Lihui, a chief statistician with the NBS.

Large enterprises continued to provide support, with their PMI at 50.3, remaining in expansion territory. PMIs for medium-sized and small firms fell to 48.7 and 47.4, respectively.

High-tech manufacturing remained a bright spot, with its PMI at 52.0, marking a second consecutive month above what is considered a relatively strong level. Equipment manufacturing PMI stood at 50.1 in January, also indicating expansion. Meanwhile, PMIs for consumer goods and high energy-consuming industries dropped to 48.3 and 47.9, respectively.

Business sentiment stayed upbeat, with the index for production and business activity expectations at 52.6, still in expansion terrain. Industries such as agricultural and sideline food processing and food and beverage manufacturing posted readings above 56.0 for a second straight month, underscoring strong confidence in near-term prospects, the data showed.

Earlier government data revealed that despite external shocks and domestic challenges, the Chinese economy had expanded by 5 percent in 2025, a pace that met the set target and remained robust by global standards.

As highlighted by Saturday's data, China continues to face a complex landscape where the imbalance between supply and demand remains pronounced. To address this challenge, China unveiled a comprehensive policy package earlier this month, leveraging fiscal and financial synergy to boost consumption and energize private investment.

The country's top economic planner also pledged to formulate a strategic implementation plan for expanding domestic demand for the 2026-2030 period.

The National Development and Reform Commission said the plan aims to adapt to consumption upgrades and technological shifts, fostering a virtuous cycle where "new demand steers new supply and new supply creates new demand" through robust innovation support. ■