Manufacturing activity in China contracted for a fourth straight month in January, based on a survey of factory managers released January 31.

The official Purchasing Managers' Index (PMI) score for China rose from 49.0 in December to 49.2 in January. Despite the increase, a reading below 50 signifies a contraction in manufacturing activity, according to the Associated Press.

“Overall, the PMI data show that China’s economy remains relatively soft, as confidence remains weak,” said IGN Economics’ Lynn Song in a report. “Until forward-looking indicators, such as new orders, return to expansion, economic momentum is likely to remain tepid.”

The Chinese auto industry is also trending down after carmakers in the country were forced to delay the delivery of some vehicles due to a production issue with computing units made by the tech company Huawei, according to Reuters.

According to sources, the issue relates to a shortage of components that go in the MDC 810, a computing unit made by Huawei that powers some vehicles’ advanced driver-assist systems.

Two people with knowledge of the situation said that Changan Auto and Chery Auto have lodged complaints with Huawei and are in talks to resolve the problem.

The Chinese economy still managed to grow at an annual pace of 5.2% in 2023. Simultaneously, China’s non-manufacturing PMI rose to 50.7 while the service sector’s PMI sub-index grew to 50.1 in January, up from 49.3 the month prior.