MNI BRIEF: China's Mfg PMI Back To Expansion Territory In Jan

China's Purchasing Managers' Index (PMI) rose to 50.1 in January, returning to expansion territory after three months as Covid controls were lifted and production activity gradually recovered, data from the National Bureau of Statistics on Tuesday showed.

The production sub-index stood at 49.8 in January, up from December's 44.6 reading. The level of production and demand in the manufacturing industry has picked up significantly, but due to the Spring Festival holiday the improvement in production was less than market demand, the NBS said.

The new orders sub-index, a gauge of demand, improved to 50.9 from last month's 43.9, marking the first expansion in seven months.

The non-manufacturing PMI registered a reading of 54.4, the highest level in since June, driven by the quick recovery in heavily impacted industries such as retail, accommodation, as well as catering and transportation, according to the NBS.

Despite the rebound, the NBS said insufficient market demand was still the primary problem facing manufacturers. The foundation for recovery and development still needs to be further consolidated, the NBS warned.