The Caixin/S&P Global survey has reported that China’s Purchasing Managers’ Index (PMI) has risen for the first time in five months, supported by a recovery in spending and tourism after the Chinese government lifted coronavirus measures to zero. This has resulted in a rebound of confidence in the business sector, reaching its highest level in nearly 12 years.
The Caixin/S&P Global Services PMI for January rose to 52.9 from December’s 48.0, with an index above 50 indicating expansion. The January services PMI rose to 54.4 from 41.6 in December, as reported by both Caixin/S&P Global and the National Bureau of Statistics (NBS).
This better-than-expected service PMI index is a sign that the world’s second-largest economy is likely to recover after being hit hard by the COVID-19 epidemic last year.