Investing.com - China’s official purchasing managers’ index (PMI) fell further into negative territory in February, data from the National Bureau of Statistics showed on Thursday.
This month’s manufacturing PMI came in at 49.2, down from 49.5 in January. The February reading was expected to remain unchanged from last month.
A reading below 50 means the manufacturing sector contracted, while a PMI above 50 represents an expansion.
Meanwhile, non-manufacturing PMI slowed to 54.3 from January’s 54.7.
Analysts noted that the February PMI reading might be distorted by the timing of the Lunar New Year, as activity in both the manufacturing and services sectors is typically cut back or halted altogether.
The ongoing trade war was cited as negatively impacting Chinese factories, although recent signs suggested the U.S. and China might still be able to reach an agreement.
Earlier this week, U.S. President Donald Trump announced a delay of tariffs hikes on $200 billion of Chinese goods as trade talks have proven to be productive so far.
He added that he might meet his Chinese counterpart Xi Jinping to sign a trade deal in March if the two sides could bridge remaining differences. However, U.S. trade representative Robert Lighthizer cautioned on Wednesday that it is too early to predict an outcome.
The worse-than-expected PMI data had limited impact on Chinese equities on Thursday. By 11:03 PM ET (04:03 GMT), the Shanghai Composite was down 0.3%, while the Shenzhen Component edged up 0.1%.