China manufacturing grew slightly in January but still in the contraction zone

According to data from the National Bureau of Statistics released on Thursday, 31 January 2019, China’s manufacturing purchasing index inch higher to 49.5 from 49.4 in December. Despite the uptick, the reading below 50 suggests a contraction in the factory activities.

Analysts said that the reading could have been worse if the government did not step up the effort to spur growth. In fact, the Chinese government has introduced a number of measures to bolster growth including tax break for small businesses, injecting more fund to the financial system and accelerate major infrastructure projects. 

Many factories in China only operate two to three weeks in January to allow the labor to go back for Lunar New Year.