China’s services sector accelerates in March as manufacturing also sees upturn
- Official non-manufacturing purchasing managers’ index rises 0.5 points from February to 54.8
- Manufacturing gauge returns to positive territory after gaining 1.3 points from previous month, its biggest increase for seven years
China’s services industry saw faster growth in March, while manufacturing activity also recovered, according to figures released on Sunday.
The official non-manufacturing purchasing managers’ index (PMI), which covers the services and construction sectors, rose 0.5 points from February to 54.8, to remain well above the 50-point mark that separates growth from contraction.
The services sector accounts for more than half of China’s economy and has helped soften the impact of a manufacturing downturn. Growth slowed late last year, however, amid a cooling property market and faltering consumer demand for everything from cars to mobile phones.
After three months in decline, China’s official manufacturing PMI picked up in March, rising 1.3 points from February to 50.5. The monthly gain was the greatest since February 2012 and came after Beijing announced it would introduce tax cuts to help struggling manufacturers.
Meanwhile, the composite PMI, which covers both manufacturing and services activity, rose to 54 points in March, from 52.4 a month earlier.