Mainland economic activity swings back to growth
The nation's economic activity swung back to growth in January, official data showed on Tuesday, supported by the easing of the latest wave of Covid-19 infection cases. The PMI, which measures manufacturing activity, rose to 50.1 from 47.0 in December, the National Bureau of Statistics (NBS) said on Tuesday.  The 50-point mark separates contraction from growth. Non-manufacturing activity, which includes provision of services, the construction industry and catering, for example, surged to 54.4, up from 41.6 in December. Both indexes had previously shown the economy to be contracting since September. Meanwhile, profit at the nation's industrial firms in 2022 fell 4 percent from a year earlier, official data showed on Tuesday, squeezed by the impact of Covid-19 containment measures and a slump in the property market. At 8.4 trillion yuan, the decline compared with the 3.6 percent fall recorded after the first 11 months, showed data from the NBS. The performance fell far short of the 34.3 percent gain seen in 2021. The bureau did not report a profit figure for December alone. Industrial output in December was 1.3 percent higher than in the same month a year earlier, versus 2.2 percent gain in November.  Economists expect economic activity to normalise this year, supported by recovery in consumption and travel, though some said declining foreign demand may cause the manufacturing sector to underperform. "Many export-oriented factories either closed earlier or resumed production later than normal this year," economists at Barclays said in a client note, referring to factory closures for the Lunar New Year holiday which this year fell in January. At a meeting chaired by Premier Li Keqiang, the cabinet on Saturday said the nation should aim at helping its economy pick up in early 2023, focusing on consumption recovery as a major driver. (Reuters)______________________________
Last updated: 2023-01-23 HKT 11:10 