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China’s factory activity hits 1-year high, adding to signs economic recovery is picking up pace
- Official manufacturing purchasing managers’ index (PMI) rebounds to 50.8 in March, crossing into expansion territory after five months of contraction
- The data extends upward swing by headline indicators, but scepticism about world’s No. 2 economy persists over property woes and local government debt
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Orange Wangin Beijing
China’s factory activity returned to expansion in March, hitting a one-year high in the latest sign the country’s economic recovery is picking up pace.
The news comes as Beijing doubles down on efforts to cast a rosy light on the world’s No. 2 economy in a bid to revive confidence both at home and abroad, though concerns over structural weaknesses still loom.
The country’s official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners – rebounded to 50.8 this month from 49.1 in February, according to data released by the National Bureau of Statistics (NBS) on Sunday.
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The figure beat the market estimate of 49.9 and returned above the watershed level of 50, which indicates expanding activity, ending five consecutive months of contraction.
The latest reading was the highest since March of last year when the gauge stood at 51.9.
“In March, as companies stepped up resuming production after the Lunar New Year, market vitality improved,” said Zhao Qinghe, senior statistician at the NBS.
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