World News | China factory activity rebounds, adding signs of recovery

BEIJING, Jan. 31 (AP) Chinese factory activity rebounded from a three-month contraction, an official survey showed on Tuesday, adding to signs that the world’s second-largest economy may be recovering from a painful recession.

The monthly purchasing managers’ index released by China’s statistics bureau and an industry group rose to 50.1 on a scale of 100, with a figure above 50 indicating growing activity.

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That was an unusually high 3.1 points compared to December’s 47 points.

China’s economic growth slipped to 2.9% from a year earlier in the final three months of 2022, but economists point to rising investment and improved consumer spending as economic activity is recovering.

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Manufacturers were hurt by subdued demand for exports in the United States and Europe after central banks raised interest rates to fight inflation. Chinese consumer demand has weakened following the COVID-19 outbreak and a downturn in the real estate sector.

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

Economist Zhang Liqun said in a statement issued by the two groups that this indicated “relatively strong economic recovery”. (Associated Press)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)