China’s manufacturing activity contracted for the sixth straight month in January, signalling persistent weakness, official data showed on Monday. The purchasing managers’ index (PMI) came in at 49.4, down from December’s 49.7, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing. A reading above 50 indicates expansion, while a reading below 50 reflects contraction. The index, below the market forecast of 49.6, fell to its lowest level since August 2012, as China’s economy is seeking new growth engines amid a housing market slowdown and a campaign to cut industrial overcapacity. NBS statistician Zhao Qinghe attributed the retreat to slowing factory activity ahead of the Chinese New Year holidays in early February, as well as the trimming of industrial capacity. The economic slowdown both at home and abroad also affected aggregate demand and foreign trade growth, Zhao explained. […]