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SHANGHAI: China's manufacturing activity decreased slightly in January as industrial output growth slowed amid severe winter weather, but the outlook remained positive.
The state-affiliated China Federation of Logistics and Purchasing said Monday that its monthly purchasing managers index, or PMI, edged down to 55.8 on a 100-point scale, compared with 56.6 in November.
Numbers above 50 show manufacturing activity expanding. After dipping in late 2008, China's PMI rose to 52.4 in March, up from February's 49.
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China's industrial output has rebounded thanks to stimulus measures aimed at boosting sales of home appliances and autos. The expansion of such policies to a wider area from the original nine of China's 31 provinces and big cities will help sustain that growth, Jing Ulrich, head of China equities at J.P. Morgan, said in a client's report Monday.
Both domestic buying and exports are supporting continued recovery, although bad weather and related power disruptions slowed industrial activity slightly in December-January, she said.