China’s manufacturing activity rebounded, but supply shortages, inflation, services disruptions linger
- China’s official manufacturing purchasing managers’ index (PMI) rose to 50.2 in February, up from 50.1 in January
- Official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, rose to 51.6 from 51.1 in January
China’s manufacturing activity and new orders expanded last month despite the interruptions caused by the Lunar New Year holiday and Winter Olympics, but analysts have warned of lingering supply shortages, inflation and disruptions to services sector activities.
“The latest surveys suggest that the pace of economic growth edged up slightly in February,” said Julian Evans-Pritchard, Senior China Economist with Capital Economics.
“But it remains weak amid continued supply shortages, higher imported inflation and persistent disruption to services activity.”
The figure was above the median forecast of a Bloomberg survey of analysts, which had predicted a fall to 49.8. A reading above 50 indicates production expansion, while a reading below that mark indicates contraction.