China's Virus Controls Undercut Holidays, Economic Recovery

China's economic recovery shows mixed signals with both manufacturing and non-manufacturing sectors expanding, but services and construction hit hard due to COVID-19 outbreaks. Travel restrictions during the Lunar New Year have significantly reduced travel. Despite this, manufacturing remains robust, driven by strong demand for medical and electronic products. The situation may influence Beijing's monetary and fiscal policies.

What was the change in the non-manufacturing PMI from December to January?

• It increased from 51.3 to 55.7

• It increased from 52.4 to 55.7

• It decreased from 55.7 to 52.4

• It remained constant at 55.7

What was a major reason for the decline in services in China?

• A rise in export demands

• An outbreak of COVID-19 cases

• A decrease in manufacturing demand

• An increase in fiscal stimulus

How did travel during the Lunar New Year compare to previous years?

• It decreased by 75%

• It remained the same as 2019 levels

• It increased by 75%

• It increased by 50%

What sectors showed strong demand, supporting the manufacturing side?

• Automobile and textile products

• Construction and real estate

• Agricultural and food products

• Medical and electronic products

What could be a potential positive outcome for markets due to the economic situation?

• Decrease in manufacturing output

• Stricter monetary policies

• Increased travel restrictions

• Easing of monetary policy and fiscal stimulus