Danske Bank analysts note that China’s January PMIs diverged, with the official NBS manufacturing index slipping below 50 while the private RatingDog measure rose above 50. The difference stems mainly from export orders. Overall, the bank still sees China muddling through a two-speed economy, with strong exports and technology offset by persistently weak domestic demand.

Exports strong as domestic demand lags

"In China, the January PMIs were a mixed bag."

"The official NBS PMI manufacturing dropped 49.3 (consensus 50.1) from 50.1 whereas the private RatingDog PMI manufacturing increased to 50.3 (consensus 50.0) from 50.1."

"However, the PMIs do not change the picture of a Chinese economy that continues to muddle through in a two-speed fashion with strong exports and tech developments amid weak domestic demand."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)