China factory activity loses steam in January

China’s factory activity slowed in January, official data showed Saturday, missing forecasts after a brief rise into positive territory at the end of last year.

A key measure of industrial health, the manufacturing purchasing managers’ index slipped to 49.3 this month, the National Bureau of Statistics (NBS) said.

The reading fell below the 50-point mark that divides expansions and contractions, also significantly behind the 50.1 forecast by a Bloomberg survey of economists.

NBS statistician Huo Lihui said in a statement that the data reflected “insufficient effective market demand”, as well as a “traditional off-season” for certain manufacturing sectors.