China factory activity unexpectedly contracts, hits five-month low

Manufacturing index slips to 49.1 while services slow and stimulus pressure builds

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Workers monitor a production line for drip tape fittings at a factory in Jiuquan, in China's Gansu province, in October. © Reuters

BEIJING (Reuters) -- China's manufacturing activity unexpectedly contracted in January, an official factory survey showed on Monday, its weakest since August, keeping alive calls for stimulus in the world's second-largest economy.

The official purchasing managers' index (PMI) contracted to 49.1 in January from 50.1 in December, below the 50-mark separating growth from contraction and missing a median forecast of 50.1 in a Reuters poll.

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