China’s factory sector contracts for the first time since 2016

The country’s huge factory sector contracted in December for the first time in two and a half years, according to government data published on Monday. It’s the latest sign of weaker momentum in the world’s second-biggest economy.

The official purchasing managers index slumped to 49.4 during the month, which was lower than what economists polled by Reuters had forecast. A reading below 50 indicates that manufacturing activity contracted compared to the previous month.