China's factories have hit the brakes this January, with the manufacturing purchasing managers' index (PMI) dropping to 49.1 📉. That's a dip from December's 50.1, signaling a slight contraction in the nation's factory activity.
So, what's behind this slowdown? Turns out, it's all about the holiday vibes! 🎊 With the upcoming Spring Festival (a.k.a. Chinese New Year), many workers are packing their bags 🧳 and heading back to their hometowns to celebrate with family.
According to Zhao Qinghe, a statistician from the National Bureau of Statistics (NBS), the mass migration of employees for the holidays has naturally impacted factory production levels.
Quick refresher: A PMI above 50 means growth 📈, while below 50 indicates contraction 📉. So, January's figure suggests factories took a breather, mainly due to the festive season.
But don't fret! This seasonal slowdown is pretty common, and activity often picks up after the celebrations wrap up. So, keep an eye out for next month's numbers! 👀
Reference(s):
China's Jan. manufacturing PMI contracts on seasonal factors
cgtn.com
