Coronavirus: China manufacturing economy bounces back strongly after lockdown

China’s official manufacturing PMI in March was 52, back from an all-time low in February and higher than forecasts

Strong recovery comes amid fears of a second economic hit, with demand set to collapse in export markets under coronavirus lockdown

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China’s official manufacturing PMI in March was 52, bouncing back from an all-time low in the first two months of the year. Photo: Xinhua

Published: 9:05am, 31 Mar 2020Updated: 12:06pm, 31 Mar 2020

China’s manufacturing engine bounced back strongly in March, recovering from a miserable February, when the country was effectively shut down due to coronavirus.

The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners in the world’s second largest economy – was 52 in March, according to data released by the National Bureau of Statistics (NBS) on Tuesday. This was up from an all-time low of 35.7 in February

A reading of 50 shows growth in the manufacturing economy, while the further below 50, the deeper the contraction. March’s reading was much higher than the median prediction of a poll of analysts conducted by Bloomberg, which expected 44.8.

China’s non-manufacturing PMI – a gauge of sentiment in the services and construction sectors – also recovered to 52.3 from 29.6 in February, another record low. This reading was well above the Bloomberg analysts’ forecast of 42.0.

China was the first major economy to shut down in an effort to contain the coronavirus pandemic, which is now ripping through the rest of the world. Its recovery is being watched closely by policymakers around the globe in the hope that a V-shaped bounce-back may be possible.