China’s service-sector activity rebounded in January, signaling a quick economic recovery following Beijing’s removal of its stringent containment regime in December.
Caixin Media Co. and S&P Global said the Caixin China Services purchasing managers index rose to 52.9 in January from 48.0 in December, according to their report released Friday .
The Caixin China Manufacturing PMI Index remained below 50 for four consecutive months (the final quarter of 2018), showing how Beijing’s COVID policies affected the Chinese economy.
For January, business activity and total new business were above 50. This marked the first time since October that those gauges were positive on balance: The removal of travel restrictions also boosted services exports—new export orders climbed into expansionary territory according to Caixin data.
There was a milder contraction in the subindex measuring employment. Still, according to Caixin, it remained in contraction for the third month as COVID infections continued to weigh on job opportunities.
Meanwhile, Beijing’s shift in its COVID policy significantly boosted business confidence. The gauge for expectations for future activity rose nearly six points from the previous month—the highest level since February 2011—Caixin said..
China’s official nonmanufacturing PMI rose to 54.4 in January—its highest level since October 2014—after falling for three consecutive months, the National Bureau of Statistics said Tuesday. Meanwhile, a competing gauge showed the slowest expansion this year at 53
In January, the official subindex measuring service activity rose sharply to 54.0 fromDecember’secember; conversely, construction improved slightly from 54.4 in December (to 56.4).
