Chinese Manufacturing Likely Shrank for Second Month
A Reuters poll suggests China's manufacturing PMI fell to 49.1 in February. Weak domestic demand and holiday closures continue to weigh on factory output.
Manufacturing activity in China likely contracted for a second consecutive month in February, as factory owners continue to face challenges from weak domestic demand and sluggish investment. A Reuters poll of 27 economists suggests the official purchasing managers index (PMI) will fall to 49.1 from January's 49.3, remaining below the 50-point threshold that separates growth from contraction.
The manufacturing sector has spent much of the past year in a downturn, briefly touching growth territory in December before retreating. Although the PMI is seasonally adjusted to account for the Lunar New Year holiday, which spanned nine days in February, economists warn that the model is imperfect and the extensive factory closures may still impact the final data.
