The Purchasing Managers Index (PMI), a barometer of manufacturing activities, reached 52.9 percent in January 2011, down 1 percentage point from December 2010, said the China Federation of Logistics and Purchasing (CFLP). This was the lowest reading in five months, and the second consecutive month in which the number dropped.

But, it still marked the 23rd straight month in which the index was above 50 percent. The PMI includes a package of indices to measure manufacturing sector performance. A reading above 50 percent indicates economic expansion.

"This indicates that the economic recovery trend is not yet clear, and we may see economic growth slow down a bit," said Zhang Liqun, a researcher at the Development Research Center of the State Council.

"The new export orders sub-index continued to fall while the input prices sub-index went on rising, which suggests that enterprises could face relatively huge difficulties of costs inflation and lackluster demands," he added.

But Bank of America Merrill Lynch economist Lu Ting said the data were heavily distorted by the holiday and there are "no big worries on growth."