China PMI factory data points to broader recovery

Mainland factory activity rose to an 11-month high last month, but economists say external headwinds and new domestic property curbs will add uncertainties to growth.

The purchasing managers' index (PMI) compiled by the National Bureau of Statistics rose to 50.9 from 50.1 in February. Despite that impressive rise, the result trailed economists' consensus of 51.2.

With last month's figure, the official PMI has stayed above 50 - the threshold that divides expansion from contraction - for six months in a row.

A private survey conducted by HSBC and Markit Economics showed manufacturing PMI rose to 51.6 last month from 50.4.

"The broad-based recovery in the March PMIs suggests that economic activity likely [has] been on a steady path of moderate recovery, while inflation pressure remains contained," said economists at JP Morgan Chase Bank in a research report.

Meanwhile, US factory activity slowed last month as new orders weakened, but a rebound in construction spending in February was another sign of faster economic growth in the first quarter.

The Institute for Supply Management said its index of national factory activity fell to 51.3 last month from 54.2 in February. A reading above 50 indicates expansion in the manufacturing sector.