BEIJING, Jan. 31 (Xinhua) -- The purchasing managers' index (PMI) for China's manufacturing sector fell to 49.3 in January as some industries entered a traditional seasonal lull and effective market demand remained insufficient, official data showed on Saturday.

This figure was down 0.8 percentage points from the previous month. A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

Despite the overall contraction, factory output continued to expand. The sub-index for production stood at 50.6, indicating steady growth in manufacturing activity. However, the new orders index dropped to 49.2, pointing to a slowdown in market demand.

By sector, production and new orders indices in industries like agricultural and sideline food processing, as well as railway, shipbuilding and aerospace equipment manufacturing, were all above 56.0, reflecting relatively strong supply and demand.

In contrast, sectors including petroleum, coal and other fuel processing, as well as automobiles, recorded readings below 50, suggesting weakening demand and softer production.

Price indicators rebounded in January amid rising commodity prices. The indices for input costs and factory-gate prices rose to 56.1 and 50.6, up 3.0 and 1.7 percentage points, respectively.

Notably, the factory-gate price index climbed above the 50 threshold for the first time in 20 months, signaling an overall improvement in pricing conditions.

Large enterprises continued to provide support, with their PMI at 50.3, remaining in expansion territory. PMIs for medium-sized and small firms fell to 48.7 and 47.4, respectively.

High-tech manufacturing remained a bright spot, with its PMI at 52.0, marking a second consecutive month above what is considered a relatively strong level. Equipment manufacturing PMI stood at 50.1 in January, also indicating expansion. Meanwhile, PMIs for consumer goods and high energy-consuming industries dropped to 48.3 and 47.9, respectively.

Business sentiment stayed upbeat, with the index for production and business activity expectations at 52.6, still in expansion territory. Industries such as agricultural and sideline food processing and food and beverage manufacturing posted readings above 56.0 for a second straight month, underscoring strong confidence in near-term prospects, the data revealed. ■