Indicators
China’s Economy Stumbles in Sign Rebound Hinges on More Stimulus
- Manufacturing PMI unexpectedly fell to lowest since August
- Economists see need for more fiscal stimulus to boost demand
Steep US tariffs could hurt China’s exports.
Photographer: AFP/Getty Images
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China’s economic activity unexpectedly faltered to start the year, breaking the momentum of a recovery sparked by stimulus measures and underlining the need for Beijing to do more to prevent another slowdown.
Factory activity shrank in January after three months of expansion, with the manufacturing purchasing managers’ index falling to 49.1, the lowest since August. The non-manufacturing gauge for construction and services dropped to 50.2, just above the 50-mark that separates growth and contraction.