Activity in China's manufacturing sector declined for a sixth consecutive month in January, suggesting a deepening economic downturn.
The CLSA China Purchasing Managers Index (PMI), which measures manufacturing activity nationwide, stood at 42.2 in January and although it is up from 41.2 in December, overall output still contracted, CLSA Asia-Pacific Markets said.
A reading above 50.0 means the manufacturing economy is expanding, while a reading below 50 indicates an overall decline.
The direction of China's manufacturing sector, which accounts for more than 40 per cent of the economy, reflects the overall direction of the world's third-largest economy.
The PMI is based on data compiled from a monthly survey of purchasing executives in more than 400 manufacturing companies in various industries across China.
The slowdown in the Chinese economy, which grew just nine per cent in 2008 compared with 13 per cent the previous year, has left about 20 million rural migrants unable to find work, the country's government has admitted.
It also acknowledged mass job lay-offs were heightening concerns about social unrest.
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