China’s economic recovery ‘on track’ as services activity hits 12-year high in March
- China’s official non-manufacturing purchasing managers’ index, which measures business sentiment in the services and construction sectors, rose to 58.2 in March
- The manufacturing gauge fell to 51.9 in March from 52.6 in February as growth for new orders and new exports orders eased
China’s rapid economic recovery remained robust in March, highlighted by business sentiment in the services and construction sectors hitting a 12-year high, suggesting the world’s second-largest economy is “is on track” after its reopening, analysts said.
But the official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, rose to 58.2 in March from 56.3 in February.
After expanding for a third consecutive month, the non-manufacturing PMI reached its highest level since May 2011, with both the services and construction subindices also hitting record highs.
The PMI indicates China’s economic recovery is on track
“The PMI indicates China’s economic recovery is on track. The expansion of service sector activities is particularly strong, as the PMI for the service sector soared to the highest level in the past decade,” Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.
“The strong momentum will likely continue in the coming months, as the new order index for the service sector continued to rise.”
The surge in the official non-manufacturing PMI largely reflects a jump in in-person activity following the lifting of coronavirus restrictions and waning infections, according to Julian Evans-Pritchard and Sheana Yue, China economists at Capital Economics, who also noted that the strength was concentrated in retail and transport.