(Yicai Global) Feb. 3 -- China's Caixin Manufacturing Purchasing Managers' Index remained in expansion at 51.1 in January, but had its worst performance since August, according to IHS Markit, which publishes the index.

The index was down 0.4 point from December, with new export businesses falling for the first time in four months as weaker external demand weighed on Chinese manufacturers. The rate of new work fell for the third straight month.

The manufacturing sector had risen for six straight months until January, suggesting a mild economic recovery, said Zhong Zhengsheng, chief economist at CEBM Group.

The ongoing coronavirus epidemic will likely further hamper the Chinese economy in the near term, he added, saying the government will need to introduce countercyclical policies to combat the disease's effect on the economy.