A key gauge of China’s manufacturing activity fell again in February as companies are becoming increasingly cautious about future business conditions amid sluggish demand both at home and abroad.
The official Purchasing Managers’ Index (PMI) fell for three months in a row in February on a month-on-month basis, dropping 0.3 point to 50.2, the lowest level since last June, the National Bureau of Statistics said on Saturday.
The PMI is based on a survey of 3,000 manufacturing companies. A PMI reading above 50 indicates expansion in manufacturing activity, while one below that level points to a contraction.
The PMI sub-index for overall new orders stood at 50.5 in February, down 0.4 point from January. The PMI sub-index for new export orders plunged 1.1 points to 48.2 in February.
The weak new-order figures apparently reflect economic slowdown in emerging markets and a slower pace of growth in infrastructure investment in China.
