China's manufacturing sector experienced a slowdown in January as the country braced for fresh US tariffs. The Caixin/S&P Global manufacturing PMI fell short of expectations, indicating a cooling in factory activity.
China's manufacturing activity slowed in January as the country prepared for new U.S. tariffs this month, according to a private sector survey released Monday. The Caixin/S&P Global manufacturing purchasing manager's index ( PMI ) came in at 50.1 in January, falling short of the Reuters poll forecast of 50.5. While the PMI remained above the 50 level that indicates expansion over contraction for the fourth consecutive month, it edged down from 50.5 in December, 51.5 in November, and 50.
3 in October. This deceleration comes after three months of consecutive expansion, further bolstering calls for increased stimulus to accelerate economic growth. Reuters had predicted the PMI would settle at 50.1.U.S. President Donald Trump signed executive orders on Saturday to impose 25% tariffs on Mexican and most Canadian imports, and a 10% tariff on Chinese goods, effective Tuesday. This move marks a significant escalation in the ongoing trade war between the two global economic powerhouses. Trump's administration had initiated a trade investigation into Beijing's adherence to a trade agreement established during his first term in office. The tariffs were implemented amidst a slowdown in the Chinese economy, although the country achieved its full-year growth target of 5.0% last year.Despite this achievement, China continues to grapple with challenges in boosting growth, facing sluggish domestic demand and a prolonged real estate slump. Exports have emerged as a crucial driver of economic expansion. The introduction of these tariffs adds further uncertainty to the global economic landscape and could exacerbate the slowdown in China's manufacturing sector
CHINESE MANUFACTURING TARIFFS US-CHINA TRADE WAR PMI ECONOMIC SLOWDOWN
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