China manufacturing sector shrinks at fastest rate for more than three years

January figures in benchmark purchasing managers' index are weaker than expected and mark a sixth straight month of contraction

Activity in China's manufacturing sector contracted at its fastest pace in almost three-and-a-half years in January, missing market expectations, an official survey showed on Monday.

The official purchasing managers' index (PMI) stood at 49.4 in January, compared with the previous month's reading of 49.7 and below the 50-point mark that separates growth from contraction on a monthly basis. It is the weakest index reading since August 2012.