Manufacturing in January contracted for the first time in nearly two years, held back by persistent drops in global commodity prices and sluggish demand, prompting the government to do some policy fine-tuning.

The Purchasing Managers Index, a key manufacturing metric, fell for the fourth consecutive month in January to 49.8, a 28-month low. It was down from 50.1 in December and 50.3 in November, the National Bureau of Statistics reported on Sunday.

A reading below 50 means contraction in the sector, while anything above 50 means expansion.