(Yicai Global) Jan. 31 -- Manufacturing activity in China snapped a three-month contraction in January by swinging back to growth.

The purchasing managers' index jumped to 50.1 this month from 47 in December, according to data the National Bureau of Statistics released today. A level above 50 indicates expansion.

Last month’s easing of Covid-19 controls, along with a series of policy measures to steady the economy, have unleashed pent-up demand in a short period of time, with demand outstripping supply this month due to the Chinese New Year holiday.

Daily life and production started to pick up after the country relaxed its Covid-19 controls, with 18 of the 21 surveyed industries growing, said Zhao Qinghe, a senior NBS statistician, adding that manufacturing has rebounded quickly.

Supply and demand have also improved. The production sub-index climbed to 49.8 this month from 44.6 last month, and the new orders sub-index rose to 50.9 from 43.9, the NBS data showed.

The production and business activities expectations sub-index jumped 3.7 percentage points to 55.6, as corporate confidence increased. Expectations among rail, shipping, and aerospace equipment and electrical machinery makers soared to the 60 mark.

The business activity index for the non-manufacturing sector surged to 54.4 in January from 41.6 in December, ending a six-month contraction. It was the strongest growth since last June, indicating a much more active service sector.

Households also showed a stronger willingness to spend. The new orders index for the non-manufacturing sector skyrocketed to 51.6 from 37.4.

The production and operational situation has significantly improved from a month ago, Zhao noted, adding that there are still many manufacturers and service providers experiencing a lack of demand. China needs to further consolidate the foundation for its economic recovery, Zhao said.

Editor: Martin Kadiev