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Manufacturing contracts for 4th month in a row

(Xinhua)
Updated: 2009-02-04 10:44

China's manufacturing activity contracted for a fourth straight month in January as the global economic downturn takes a toll on the country's economy.

Related readings:  China to discuss support plans for machinery, textile industries  China unveils support package to auto, steel industries  China's PMI rises to 41.2 pct in Dec.  China manufacturing shrinks for 5th month

But the manufacturing also showed improvement for a second consecutive month following a series of government policies to support the weakening economy.

The Purchasing Managers' Index (PMI) of China's manufacturing sector rose to 45.3 percent from 41.2 percent in December and a record low of 38.8 percent in November, the China Federation of Logistics and Purchasing (CFLP) said Wednesday.

A reading above 50 percent suggests expansion, while one below 50 percent indicates contraction.