China's manufacturing activity contracted for the first time in more than two years in January, an official survey showed Sunday, signalling further downward pressure on the world's second largest economy. The official Purchasing Managers' Index (PMI) released by the National Bureau of Statistics (NBS) came in at 49.8 last month, down from 50.1 recorded in December.

The index, which tracks activity in factories and workshops, is considered a key indicator of the health of China's economy, a major driver of global growth. A figure above 50 signals expansion, while anything below indicates contraction. January's figure was the first contraction for 27 months. British banking giant HSBC is scheduled to release its final PMI figure today.