By Gina Lee

Investing.com – Chinese factory activity recorded an unexpected expansion in February, thanks to growing new orders. But, the downward pressures are still building and it remains to be seen what the Russian invasion will do to Ukraine’s economy.

The Tuesday release showed the figure at 50.2, which was above the 50 point mark, which indicates growth. Forecasts prepared by Investing.com predicted a figure of 49.9. while January’s figure was 50.1.

In 2020, the economic recovery following COVID-19 was strong. Due to the debt crisis in property and the strict anti-viral measures, consumer confidence and spending were severely affected, the recovery did not pick up in 2020. The government has vowed to stabilize the recovery in 2022, and the focus is now on the 13th National People’s Congress, whose fifth annual session begins on Mar. 5.

The recent Russian invasion in Ukraine is likely to cause global supply chain disruptions that could lead to long-lasting strains on Chinese factories.

On a brighter note, however, data shows that new orders increased for the first time in August 2021 due to an increase in demand after the Lunar New Year holiday. Production growth was slower than January’s 50.9, but the sub-index stood at 50.4.

“New orders returned to the expansionary territory, suggesting that manufacturing market demand has been quickly released since the holiday,” NBS senior statistician Zhao Qinghe said in a statement accompanying the data’s release.

Manufacturing activities gradually resumed normal after the Spring Festival.

The private was 50.4, compared to the Investing.com forecast number of 49.5 and January’s 49.1 figure. The for the services sector was 51.6, higher than January’s 51.1 figure.

There are still occasional COVID-19 epidemics throughout China. Some factories were temporarily shut down in Suzhou, the east city. Meanwhile, the Special Administrative Region of Hong Kong reports an increase in cases.