Chinese factory activity rebounds, adding to recovery signs: Survey

Chinese factory activity rebounded in January from three months of contraction, adding to signs the world's second-largest economy might be recovering from a painful slump

Chinese factory activity rebounds, adding to recovery signs: Survey
Chinese factory activity rebounds, adding to recovery signs: Survey. Illustration: Ajay Mohanty
AP Beijing
1 min read Last Updated : Jan 31 2023 | 11:39 AM IST

Chinese factory activity rebounded in January from three months of contraction, adding to signs the world's second-largest economy might be recovering from a painful slump, an official survey showed Tuesday.

A monthly purchasing managers' index issued by the Chinese statistics agency and an industry group rose to 50.1 on a 100-point scale on which numbers above 50 show activity growing.

That was an unusually large gain of 3.1 points from December's 47.

China's economic growth sank to 2.9 per cent over a year earlier in the final three months of 2022, but economists point to increased investment and improved consumer spending as signs activity is recovering.

Manufacturers have been hurt by lackluster US and European demand for exports after central banks raised interest rates to fight inflation. Chinese consumer demand weakened following COVID-19 outbreaks and a downturn in the real estate industry.

New orders, new export orders, factory activity and employment improved in January, the National Bureau of Statistics and the China Federation of Logistics and Purchasing reported.

That shows economic recovery momentum is relatively strong, economist Zhang Liqun said in a statement issued by the two groups.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Chinese marketChinese economic policyChinese government

First Published: Jan 31 2023 | 11:39 AM IST

Next Story