The HSBC China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, inched up to a final reading of 49.7 in January from 49.6 in December, HSBC Holdings PLC said Monday. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates an expansion. Both new orders and new export orders saw downward revisions, but still signaled a marginal expansion, HSBC said. "We think demand in the manufacturing sector remains weak. More aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth," HSBC's chief economist for China, Qu Hongbin, said in a statement. The final reading was lower than HSBC's preliminary January PMI of 49.8, announced Jan. 23. The preliminary figure is based on 85% to 90% of responses to its PMI survey. The HSBC China Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in more than 420 manufacturing companies. China's official manufacturing PMI, released Sunday, fell to a weaker-than-expected 49.8 in January from 50.1 in December, its first slip below 50 since September 2012. marketwatch