China factory output shrinks for fifth straight month
Factory activity in China contracted for the fifth straight month in February, official figures showed on Friday, as sluggish demand in the world's second-largest economy continues to drag on growth. The purchasing managers' index (PMI) – a key measure of factory output – came in at 49.1 in February, according to the National Bureau of Statistics (NBS). A PMI figure above 50 indicates an expansion in activity, while below indicates a contraction. China's monthly PMI has only registered in positive territory twice throughout the last year, most recently in September. Factory activity has consistently contracted since then, with February marking the fifth consecutive month of decline. But the latest figure beat an expected PMI of 48.8 forecast by analysts polled by Bloomberg. In recent months, mainland authorities have announced a series of targeted measures as well as a major issuance of sovereign bonds to boost infrastructure spending and revive economic activity.  The weeklong Lunar New Year period – the longest annual public holiday – occurred in February this year, also partially explaining the slowdown in activity. China's non-manufacturing PMI – which takes into account the services sector – remained in positive territory in February at 51.4, up from 50.7 the previous month, the NBS said on Friday. The latest figure came in higher than expected for analysts polled by Bloomberg, who had predicted it to stand at 50.2. China is gearing up to unveil official economic goals for the current year on Tuesday at the start of the annual National People's Congress session, including the highly anticipated GDP growth target. (AFP)