China’s factory sector expands in January

By Alimat Aliyeva

China's RatingDog Manufacturing Purchasing Managers Index (PMI) came in at 50.3 in January, signaling expansion and rising slightly from 50.1 in December, Azernews reports, citing foreign media.

The data showed that production grew at its fastest pace in the past three months, indicating a stronger start to 2026 for the manufacturing sector.

“Overall, the manufacturing sector maintained growth in January, supported by a modest recovery in demand and slight improvements in employment,” said Yao Yu, founder of RatingDog. “However, business confidence has dipped, and the overall growth momentum remains fragile. Looking ahead, if cost pressures continue while demand recovery remains limited, profit margins are likely to stay under pressure. Policy support for strategic initiatives could play a key role in consolidating recovery momentum throughout 2026.”

Analysts note that the marginal growth in January may also reflect manufacturers’ cautious optimism amid global supply chain uncertainties and rising commodity prices, suggesting that while expansion is underway, companies are still navigating a complex economic environment.