The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.3 in January, down 0.8 of a percentage point on the previous month, according to the National Bureau of Statistics on Saturday.

Sub-indices of new orders and new export orders also saw declines, respectively down to 49.2 from 50.8 in December and 47.8 from 49 in December. The 50 mark separates growth from contraction.

The PMI for the non-manufacturing sector, which includes services and construction, came in at 49.4 in January, down 0.8 of a percentage point.

Huo Lihui, a statistician with the National Bureau of Statistics, said in a note that some manufacturers typically enter a slow period in January, when market demand is weak. The Lunar New Year falls in either January or February, and this year it begins on February 17.

The world's second-largest economy hit the government's official growth target of 5 percent last year, underpinned by strong exports that defied pressure from US President Donald Trump's tariff offensive.

To boost domestic demand, the government front-loaded 62.5 billion yuan from ultra-long special treasury bond funds to support its scheme offering consumers subsidies to replace a range of products from home appliances to smartphones.

Earlier this month, the central bank, the People's Bank of China, announced cuts to sector-specific interest rates and signalled it had room this year to further reduce banks' cash reserve requirements and deliver broader rate cuts.

Authorities are trying to spur household spending on goods and are now also pivoting towards measures to boost services consumption to absorb the output of the manufacturing sector. (Xinhua/Reuters)