China's non-manufacturing PMI down in January

BEIJING - China's non-manufacturing sector continued its expansion in January but at a slower pace, official data showed Sunday.

The purchasing managers' index (PMI) for China's non-manufacturing sector came in at 51.1 in January, down from 52.7 in December, the National Bureau of Statistics (NBS) said.

A reading above 50 indicates expansion, while a reading below it reflects contraction.

Due to a resurgence in COVID-19 cases in several regions, the sub-index for business activities in the services sector declined 1.7 percentage points from December 2021 to a five-month low of 50.3 in January, said NBS senior statistician Zhao Qinghe.

Zhao also pointed out significant performance differences between sectors. In January, monetary and financial service providers benefited from the implementation of a series of supportive policies for the real economy. They saw a relatively fast business growth, with its business activity sub-index reaching over 60.

Boosted by brisk holiday spending, the sub-index for business activities in retailing increased by 5.5 percentage points and returned to the expansionary territory.

However, sectors such as transportation, accommodation and resident services, greatly affected by the epidemic resurgence, saw business activities decline this month.

The overall business climate in the construction sector weakened seasonally as construction activities slowed due to the unfavorable weather conditions and workers returning to their hometowns ahead of the Chinese Lunar New Year.

The sub-index for business activities in the construction sector stood at 55.4 in January, 0.9 percentage points lower than the previous month. But the business expectation index recorded a marked rebound to 64.4, reflecting optimism among construction companies over the post-holiday operation.

Sunday's data also showed that the PMI for China's manufacturing sector came in at 50.1 in January, down from 50.3 in December 2021.