China’s factory activity contracts in January for the first time in 4 months

HONG KONG — Manufacturing slowed in China in January for the first time in four months as workers began leaving assembly lines to travel to their hometowns for Lunar New Year holidays. The National Bureau of Statistics said its purchasing managers index, based on a survey of factory managers, slipped to 49.1 in January from 50.1 the month before. The slide in factory activity was partly due to the approach of the holidays, said Zhao Qinghe, a bureau senior statistician. While activity slowed this month, it’s likely to pick up again thanks to the government’s efforts, Zichun Huang of Capital Economics said in a commentary.