(Yicai Global) Feb. 1 -- Factory activity in China slowed last month while remaining above the expansionary level of 51 for a seventh straight month as manufacturers eased up production ahead of the annual Spring Festival holiday.

The purchasing managers' index for manufacturing, which tracks mostly big state-backed companies, slowed to 51.3 in January from 51.9 in December, according to data the National Bureau of Statistics released yesterday.

The figure usually falls before Chinese New Year holiday while a new cluster of Covid-19 cases in some regions hampered production and business operations, said Zhao Qinghe, senior statistician at the NBS’ Service Survey Center.

Supply and demand were stable. The sub-index for new orders fell 1.3 point to 52.3. New export orders slid 1.1 point, but stayed above the 50 mark that separates expansion from contraction. Production dipped 0.7 point to 53.5, while procurement volumes fell 1.2 point to 52.

The non-manufacturing business activity index, which reflects activity in the services and construction sectors, stood at 52.4, down 3.3 points. That for the service sector slipped 3.7 points to 51.1 percent, as the pandemic hindered consumption. 

In the construction industry, business activity fell 0.7 point to 60 amid cold winter weather and the upcoming holiday. New orders fell 4.6 points to 51.2 as demand weakened. Expectations of business activity shrank 9.9 points to 53.6 as more firms predict a slowdown, said Zhao.

The comprehensive output index declined 2.3 points to 52.8, indicating weaker production and business operations.

Editor: Emmi Laine