China factory sector growth beats expectation in January

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Activity in China's manufacturing sector expanded slightly more than expected in January, but at roughly the same pace as in December, official data showed on Wednesday.

The official Purchasing Managers' Index (PMI) stood at 51.3 in January, compared with the previous month's 51.4, and above the 50-point mark that separates growth from contraction on a monthly basis.

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Analysts polled by Reuters had predicted a reading of 51.2, pointing to a modest expansion as industrial firms continued to benefit from higher sales prices and a recovery in demand fueled by a construction boom.

China is making a transition from an export-reliant economy to a service and innovation-driven one, with the economy expanding at 6.7 percent last year.

Official data released on Tuesday showed that China’s power use is expected to grow by 3 percent in 2017, down from 5 percent last year.

The nation’s power consumption stood at 5.9 trillion kilowatt hours boosted by increased consumption from service sector, the China Electricity Council said.

The country’s energy use per unit of GDP fell 5 percent in the past year, marking its progress in energy efficiency and clean energy, it said.

(With inputs from Reuters)