As a result, purchasing activity and inventory levels both increased.
Business sentiment also improved, though firms remained cautious with hiring as employment levels fell at the fastest pace in nearly five years, according to a release from S&P Global Ratings.
Output prices also declined at a quicker pace despite stable input costs, as firms offered discounts to support sales.
The headline seasonally-adjusted PMI fell to 50.1 in January, down from 50.5 in December. Posting above the 50.0 neutral mark, the latest data signalled that conditions in the manufacturing sector improved for a fourth straight month, albeit only fractionally.
Manufacturing production in China increased for a fifteenth successive month at the start of 2025. Moreover, the pace of expansion accelerated from December, in line with the trend for new orders.
Higher new business, driven by better underlying demand and increased promotional efforts, supported the rise in output.
Some manufacturers also noted that client desires to stockpile underpinned the growth in new work inflows.
The rise in new orders stemmed mainly from improvements in domestic demand, however, as export orders fell fractionally in January.
ALCHEMPro News Desk (DS)
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