BEIJING, Jan 17 Reuters China39;s industrial output grew at a modest 1.3 pace last month yearonyear, official data showed on Tuesday, easing from a 2.2 rise in November, as manufacturing activity was hit by the rampant spread of COVID infections that bound workers indoors.

The growth rate was stronger than a 0.2 expansion analysts had forecast in a Reuters poll.

Retail sales contracted for a third straight month to 1.8 even as China abandoned its stringent zeroCOVID policy last month, removing movement controls and testing measures. Consumption weakened as infections surged and people took time to recover.

Analysts had expected an 8.6 tumble after a 5.9 drop in November.

Fixed asset investment grew 5.1 in 2022, beating a forecast 5.0 rise and down from a 5.3 jump in JanuaryNovember.

The world39;s secondlargest economy was sluggish for most of last year due to China39;s tough antivirus measures, a prolonged slump in its property sector and feeble global growth.

Reporting by Kevin Yao, Liz Lee and Joe Cash; Editing by Tom Hogue

Source Reuters