China’s factory, services activity enjoys ‘rapid’ economic rebound in February after reopening

China’s official manufacturing purchasing managers’ index (PMI) rose to 52.6 in February, while the non-manufacturing gauge rose to 56.3 last month

Caixin/S&P Global manufacturing PMI also rose to 51.6 last month, up from 49.2 in January.

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China’s official non-manufacturing purchasing managers’ index (PMI) rose to 56.3 last month from 54.4 in January. Photo: Xinhua

Published: 9:36am, 1 Mar 2023Updated: 10:12am, 31 Mar 2023

China enjoyed a “rapid near-term rebound” in February as factory and services activity continued their rally last month, data released on Wednesday showed, but the foundations of an overall economic recovery are “not yet solid” due to lingering coronavirus factors, according to analysts.

The official manufacturing purchasing managers’ index (PMI) beat expectations and rose to 52.6 last month, up from 50.1 in January, according to the National Bureau of Statistics (NBS), to the highest reading since April 2012. The 50-mark separates growth from contraction on a monthly basis.

The Caixin/S&P Global manufacturing PMI, which focuses on small firms and coastal regions and includes a number of exporters, reflected the rebound and rose to 51.6 last month, up from 49.2 in January.

The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, rose to 56.3 in February from 54.4 in January.

The latest survey data is exceptionally strong, consistent with our expectation for a rapid near-term rebound in economic activity

Julian Evans-Pritchard

“The latest survey data is exceptionally strong, consistent with our expectation for a rapid near-term rebound in economic activity,” Julian Evans-Pritchard, head of China economics at Capital Economics.

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