China Factory Activity Contracts for 5th Month, Uneven Recovery Adds Pressure for Policy Support
• China's factory activity contracted for the 5th straight month in February, suggesting weak demand is still hurting growth
• The official manufacturing PMI edged down to 49.1 in February from 49.2 in January, missing forecasts
• Non-manufacturing PMI rose to 51.4, helped by a pickup in travel and tourism during the long holiday
• Data shows an uneven recovery, adding pressure on policymakers to act to support growth
• Goldman Sachs said the divergence between official and Caixin PMIs may signal structural shifts in the economy