Economic activity in China has expanded for the first time in four months as disruptions caused by the abrupt end of its zero-Covid policy appears to be fading.
The official purchasing managers’ index (PMI) for manufacturing, which measures activity at factories, jumped to 50.1 in January from 47 in December, according to the National Bureau of Statistics.
It’s the first time the gauge has crossed the 50-point mark since September. A reading above 50 indicates expansion, while anything below that level shows contraction.
The official non-manufacturing PMI, which tracks activity in the services and construction sectors, surged to 54.4 in January from 41.6 in December, also marking its first expansion in four months.
This is a sign that China’s Covid “exit wave” is coming to an end, said analysts from Nomura in a research report.