China's manufacturing sector displayed resilience in January, with production and high-tech industries remaining in expansion mode, even as overall factory activity slipped back into contraction zone amid seasonal factors, official data showed.

Analysts said the figures indicated a stabilizing economy and renewed industrial momentum, painting a more nuanced picture of the economy. Supply-side momentum was holding firm, while innovation-driven segments were continuing to act as key stabilizers. This was happening as policymakers stepped up efforts to secure a solid growth footing for 2026.

Looking ahead, analysts expect near-term factory activity to face further volatility around the Spring Festival holiday due to fewer working days. However, they also see policy support and industrial upgrading being key anchors for growth this year.

READ MORE: China manufacturing industry shows resilience as output, high-tech sector expand

With structural fiscal and monetary measures already being deployed and further easing — including potential interest rate and reserve requirement ratio cuts — possible, policymakers have ample room to navigate still-weak domestic demand, structural transition and external uncertainty in 2026, they added.

The official purchasing managers index for the manufacturing sector fell to 49.3 in January, down from 50.1 in December, indicating a mild contraction, data from the National Bureau of Statistics showed on Saturday.

Despite the overall contraction, key segments of the manufacturing sector continued to show resilience. The PMI for high-tech manufacturing came in at 52 in January, remaining at or above 52 for two consecutive months. The PMI for equipment manufacturing stood at 50.1, signaling expansion.

Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, said the slip in manufacturing PMI figures for January was mainly due to a combination of seasonal factors, base effects and insufficient domestic demand, particularly linked to the ongoing adjustment in the property sector.

Wang added that high-tech sectors as well as manufacturing output showed resilience, supported by robust exports in January due to strong demand for products like chips, linked to the global surge in artificial intelligence investment.

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Xiong Yuan, chief economist at Guosheng Securities, said that as 2026 marks the opening year of China's 15th Five-Year Plan (2026-30) period, securing a strong start this year will be among key priorities of policymakers. "Fiscal policy is likely to be front-loaded, with the first group of trade-in subsidies already allocated," he said.

Foreign companies are also betting on the resilience of the world's second-largest economy, expressing a strong commitment to the China market.

Brian McNamara, CEO of British multinational consumer health company Haleon, said: "China is central to our ambition to reach 1 billion more consumers by 2030. An aging population, a rising middle-income group and greater focus on wellness are fueling demand."

Contact the writers at ouyangshijia@chinadaily.com.cn