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China's manufacturing contracts for 4th month in Jan.

(Xinhua)
Updated: 2009-02-04 10:35

BEIJING -- 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 cashes in another $19b for stimulus plan  China considering new stimulus - report  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.