Both indexes had previously shown the economy to be contracting since September.
The data is one of the first NBS indicators of how the
economy has managed since the end of China's zero-COVID regime
and during a week-long Lunar New Year that ended on Friday.
Eighty percent of people in China had already been infected
with COVID-19 before the festivities began, according to China's
chief epidemiologist, with the wave of disease passing through
the population faster than economists had expected and bringing
fewer disruptions, too.
Lunar New Year consumption was 12.2% higher than in last
year's holiday period, while holiday trips inside China surged
74%, as people headed out to celebrate for the first time in
three years without COVID-19 restrictions.
China's cabinet pledged on Saturday it would promote a
recovery in consumption as the major driver of the economy and
boost importers. Chinese manufacturers are struggling with
cooling external demand.
Chinese exports last month were 9.9% lower than a year earlier. Factories tried to retain workers over the festive period to make up ground lost to the COVID disruptions of last year. Kevin Whyte, who sources homewares in China for a major Britain-based retailer, told Reuters that his partner factory in China had offered bonuses to workers to shorten their vacations over the New Year period. The official composite PMI, which combines manufacturing and services, rose to 52.9 from 42.6 in December.
The private sector Caixin manufacturing PMI, which centres
more on small firms and coastal regions, will be published on
Feb. 1. Analysts polled by Reuters expect a headline reading of
49.5, up from 49.0 in December.
(Reporting by Joe Cash; Editing by Bradley Perrett)
