China reported weaker than expected factory activity on January 27, adding to concerns about slowing momentum in the world’s second largest economy. Official data showed manufacturing output and new orders easing as overseas demand remained subdued and domestic confidence stayed fragile.
Economists said export oriented industries were particularly affected, reflecting slower growth in key markets across Europe and North America. New orders declined, while factory employment showed limited improvement, suggesting cautious sentiment among manufacturers.
The data comes as Beijing continues to roll out targeted support measures for industry, including tax relief and credit assistance for small and medium sized firms. Analysts noted that while these steps may provide some stabilization, they may not be enough to reverse broader demand weakness.
Supply chain pressures have eased compared to previous years, but businesses remain wary of overcapacity and price competition. Several firms reported holding back on investment and expansion plans due to uncertain global conditions.
Chinese officials said they will continue monitoring economic indicators closely and adjust policy tools as needed to support growth. The latest figures highlight ongoing challenges for the manufacturing sector as China seeks to balance recovery with structural reforms.
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