China's services activity logged a strong recovery in January thanks to a robust consumer market during the week-long Spring Festival holiday.
The purchasing managers' index for China's non-manufacturing sector came in at 54.4 in January, up from 41.6 in December, the National Bureau of Statistics said Tuesday. A reading above 50 indicates expansion, while a reading below it reflects contraction.
The services activity ended its six-month losing streak in January and returned to positive territory, with a sharp rebound in the business climate.
Of all 21 surveyed industries, 15 saw business expansion, with railway, aviation, postal services, financial services, and insurance in a high climate range of above 60. Retail, hotel, and catering sectors, previously hardest hit by COVID-19, also resumed expansion.
Data showed the construction sector maintained relatively rapid expansion. As various government policies to promote major projects have taken effect, building enterprises have remained optimistic.
