1. Report's Industry Investment Rating No information provided about the industry investment rating in the report. 2. Core Viewpoints - Seasonal effects dragged down manufacturing production and demand, and the foundation for economic recovery needs to be consolidated. In January, the manufacturing PMI was 49.30%, down 0.8 percentage points from the previous value, falling below the boom - bust line. The new orders index on the demand side dropped 1.60 percentage points to 49.20%, and the production index on the supply side dropped 1.10 percentage points to 50.60% [1]. - Changes in the international trade environment disrupted the growth of external demand. In January, the new export orders index was 47.80%, down 1.20 percentage points from the previous value, while the import index was 47.30%, up 0.30 percentage points from the previous value. Although the manufacturing PMIs in the US and the Eurozone rebounded, changes in import policies or rules in some international markets expanded the impact on China's product exports [1]. - Driven by the rise in commodity prices, the price side of the manufacturing industry continued to recover. The raw material purchase price index remained in the expansion range, and the ex - factory price index rose above the boom - bust line, with the spread between the two widening by 1.3 percentage points to 5.50 pct [2]. - Non - manufacturing business slowed down, and the service industry was relatively stable. In January, the official non - manufacturing PMI was 49.40%, down 0.80 percentage points from the previous value. The service industry PMI was 49.50%, down 0.2 percentage points. The construction industry's business climate declined due to weather and holiday factors [2]. 3. Summary by Relevant Catalogs 3.1 PMI Presents Structural Highlights - The manufacturing PMI in January was 49.30%, down 0.8 percentage points from the previous value, falling below the boom - bust line. The new orders index on the demand side and the production index on the supply side both declined. The slowdown in demand due to the approaching Spring Festival and the pre - placement of some production capacity led to a seasonal contraction in manufacturing production and demand [12]. - Among different industries, the high - tech manufacturing PMI was 52.0%, remaining at a relatively high level for two consecutive months; the equipment manufacturing PMI was 50.1%, staying in the expansion range; the consumer goods industry and high - energy - consuming industries had PMIs of 48.3% and 47.9% respectively [12]. 3.2 External Environment Disturbance - In January, the new export orders index dropped, while the import index rebounded. Although the manufacturing PMIs in the US and the Eurozone improved, changes in international market import policies or rules increased the impact on China's exports, and the probability of export disturbances and uncertainties remained [19]. 3.3 Price - end Recovery - Driven by rising commodity prices, the manufacturing price - end continued to recover. The raw material purchase price index remained in the expansion range, and the ex - factory price index rose above the boom - bust line, with a wider spread. The current price recovery may be due to rising global commodity prices and previous policies to rectify "involution - style" competition, which may also be reflected in the next stage of PPI data. However, if raw material prices rise much faster than finished - product prices, it may put pressure on corporate profits [27][29]. 3.4 Attention to Corporate Business Vitality - In January, the PMIs of large, medium, and small enterprises all declined. Against the backdrop of rapidly rising raw material prices and uncertain external demand, improving corporate prosperity is a key link for continuous economic recovery, which helps promote the upstream - downstream transmission of prices and stabilize and expand domestic demand [31]. 3.5 Non - manufacturing Business Climate Decline - The non - manufacturing business slowed down in January, with the non - manufacturing PMI at 49.40%, down 0.80 percentage points from the previous value. The service industry PMI was 49.50%, down 0.2 percentage points. Some industries in the service sector, such as monetary and financial services, capital market services, and insurance, had high market activity, while the real estate industry was weak. The service industry's business activity expectation index increased, indicating enhanced confidence [34]. - The construction industry was still in the contraction range. Affected by weather and holiday factors, the construction industry's business climate declined, with the business activity index dropping 4.00 percentage points from the previous value. The business activity index and new orders index both decreased significantly, and the business activity expectation index fell below the critical point, showing cautious expectations from construction enterprises [35]. 3.6 Investment Suggestions - The domestic PMI data in January showed structural highlights. Although the manufacturing PMI, non - manufacturing PMI, and composite PMI output index declined from the previous values, indicating a short - term slowdown in economic prosperity during the traditional off - season, there were still highlights such as the expansion of the production side, the leading role of new - energy industries, and positive expectations in the service industry [3][40]. - The recovery of the price index was another feature of the manufacturing PMI in January. Affected by rising commodity prices, the main raw material purchase price index and ex - factory price index both increased, which was conducive to improving corporate revenue and profit margins [3][40]. - Looking forward to February 2026, manufacturing production may continue to slow down due to the Spring Festival, but it will gradually recover after the holiday. The service industry in the non - manufacturing sector is expected to benefit from Spring Festival consumption, and its business climate is likely to continue to improve. Overall, the economy will maintain a weak recovery trend, and the bond market will continue to show a slightly stronger oscillatory trend [3][40].