China's manufacturing PMI hit its lowest level in 19 months, coinciding with the Lunar New Year holiday, which contributed to a slowdown in business activity. China's official index came in at 50.3 points in February, below expectations for a growth of 51.2 points. January's reading was 51.3 points.
The readings above 50 levels point to expansion in the sector while readings below it refers to deflation. The official index of the manufacturing sector in China focuses on large companies and state-owned enterprises.
At the same time, the services PMI fell to 54.4 in February from 55.3 in January. The Chinese economy is expected to see some calm in 2018 following an unexpectedly strong showing last year.
