The earliest known indicator of China's economic condition, the Flash Purchasing Managers' Index (PMI) was reported to fall to 50.4 from 52.3 in January.

Earlier at 52.3, the PMI was at two-year high level. The reading is still above 50 and that means it is inclined more towards the small and medium businesses than the official PMI. The increase was recorded fourth consecutive in a row.

It is observed as a marker of commodity import growth moderation in near future. The trade data for the country was greatly affected by the impact of Lunar New Year Holiday, which was observed in February this year. In 2012, the holiday fell in January.

The PMI points mark the potential easing in commodity imports; however, this does not mean that China's economic recovery has been hampered. The index breakdown asserted that the smoothness in last month was concentrated in decreasing stocks of purchases and finished goods.

It is supporting that index shows domestic demand being met and it fulfils the aim of authorities to switch the drivers of economy from external to internal. Rise in domestic demands is expected to result into higher vehicle purchases and use; consequently, increasing the consumption of gasoline and diesel. Crude imports in January were reported to be 5.92 million barrels per day (bpd).