The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.1 in January, down from 50.1 in December, the China Federation of Logistics and Purchasing (CFLP), together with the National Bureau of Statistics' Service Survey Center, announced on Monday.

According to China Central Television (CCTV), influenced by the upcoming Spring Festival holiday and large scales of employees returning to their hometowns, the PMI dropped by 1 percentage point compared to the previous month.

Spring Festival is the most important holiday on the Chinese calendar and an occasion for family reunions.

The data showed that, for key sectors, the PMI for the equipment manufacturing industry was recorded at 50.2 percent, remaining above the critical point for six consecutive months.

Business expectations have notably improved, with the index for production and business activity expectations rising to 55.3 percent, an increase of 2 percentage points from the previous month, indicating that most manufacturing enterprises are showing strengthened confidence in market development after the holiday.

In addition, the non-manufacturing business activity index, driven by the effects of the Spring Festival, has continued to expand.

Industries of transportation, accommodation, catering, and scenic services, which are linked to boosted travel and consumption of residents, have shown positive performance and enhanced market activity.