China manufacturing growth expands in January but firms flag worries

China's manufacturing sector growth accelerated in January but firms expressed concerns over economic conditions, S&P Global reported Monday.

The RatingDog China general manufacturing purchasing managers' index rose to 50.3 points in January from 50.1 in December, matching the FXStreet-cited consensus forecast.

A reading above the 50-point neutral mark indicates an overall increase in month-on-month business activity, while a reading below signals a contraction.

According to S&P Global, the growth is driven by new business inflows while Chinese manufacturing firms attributed the rise in new orders to greater client interest and increased customer bases.

Yao Yu, founder of RatingDog, said: "On the demand side, total new orders expanded for the eighth consecutive month. Notably, new export orders returned to expansion territory after a contraction in December, primarily buoyed by increased demand from Southeast Asia and other overseas markets.

"However, the overall growth of new orders remained fractional, with some firms citing high prices and subdued market conditions as inhibitors to growth. Regarding production, the production index rose further, with the growth rate of output accelerating slightly, while the quantity of purchases picked up significantly."

Staffing levels rose for the first time in three months, helping firms reduce outstanding workloads.

Purchasing activity also picked up at the start of the year as firms bought more raw materials and semi‑finished goods to meet business needs.

"Regarding prices, amid accumulating cost pressures, firms raised output charges for the first time since November 2024, with the rate of increase among the fastest in the past one and a half years. Input prices rose for the seventh consecutive month and at the sharpest rate since September 2025. Metals experienced particularly significant price increases, as the current commodity bull market driven by precious metals continues with no signs of peaking yet," said Yu.

S&P Global reported that business sentiment remained positive but slipped to a nine‑month low amid worries over economic growth and rising cost pressures.

S&P Global compiles the monthly PMI based on survey responses from a panel of approximately 650 manufacturers, spanning both private and state-owned firms.