(MENAFN) China's manufacturing growth slowed for the second consecutive month in January and firms had to cut prices at a faster pace to win new business, Arab News reported.
The contraction added to worries about growing deflationary pressures in the economy. The HSBC/Markit Flash Manufacturing Purchasing Manager's Index (PMI) was around 49.8.
Analysts expect a second month of contraction for the country, reflecting the tumble in oil prices, which have more than halved in the past six months to a level not seen since the global financial crisis.
"Today's data suggest that the manufacturing slowdown is still ongoing amidst weak domestic demand. More monetary and fiscal easing measures will be needed to support growth," economists said.
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