On January 30 2026 Chinese government data showed that factory activity slowed further as weak global demand and cautious domestic spending continued to weigh on the world second largest economy. Official manufacturing figures indicated reduced new orders particularly from overseas markets where higher interest rates and slowing growth have dampened consumption.
Economists said export oriented factories were among the hardest hit with companies reporting lower production volumes and delayed investment plans. Domestic demand also remained fragile as households continued to prioritize savings amid ongoing property sector uncertainty. Authorities acknowledged the challenges but emphasized that targeted stimulus measures were already being implemented to support small manufacturers and stabilize employment.
The Chinese government said it would expand credit access for private firms and accelerate infrastructure projects to boost activity. Analysts noted that while growth has not collapsed the prolonged slowdown could affect regional supply chains and global trade flows if demand does not recover in the coming months.
Markets reacted cautiously to the data with investors watching closely for additional policy signals. Officials reiterated confidence that long term fundamentals remain solid while stressing the need for balanced and sustainable growth in 2026.
Leave a comment