China's manufacturing activity shrinks in January

The news: Factory activity in China shrank for the fourth straight month in January, underscoring the challenges faced by the world's second-largest economy.

The numbers: China's manufacturing purchasing manager index (PMI) lifted from 49.0 to 49.2, but was still below the 50 that denotes expansion from contraction. Non-manufacturing PMI, which includes services and construction, improved from 50.4 in December to 50.7, it's highest level since September last year.

The context: The data comes as the International Monetary Fund has lifted its 2024 GDP forecast for China to 4.6%, up from 4.2%. A property sector liquidity crisis and weak demand at home and abroad have been causing headaches for policymakers in Beijing, and last week China's central bank reduced banks' reserve requirements in an effort to improve capital flows.