Shanghai, China, Mar 31 (EFE).- Activity in China’s manufacturing industry rebounded in March after five consecutive months of contractions, even exceeding analysts’ expectations, according to official data released Sunday by the country’s National Statistics Office, or ONE.
The Purchasing Manager Index, or PMI (the sector’s reference indicator), stood at 50.8 points in March, 1.7 units above February’s mark (49.1) and the highest record since March 2023.
The figure also exceeds the most widespread forecasts among analysts, who expected the manufacturing PMI to mark a sixth consecutive month of decline and be on the verge of rebounding, at about 49.9 points.
In this indicator, a mark above the threshold of 50 integers represents growth in activity in the sector compared to the previous month, while one below represents a contraction.
Of the five subindices that make up the manufacturing PMI, those of production, new orders – key to demand – and delivery times returned to the expansion zone, while employment and raw materials improved compared to their last record but also remained in the negative zone.
ONE statistician Zhao Qinghe attributed the rise to the recovery in production after the holiday break for the Lunar New Year, the main festive time of the year in the country, and also points to data such as the first positive mark in recent months in the PMI of small companies.
Despite this, the official analyst still speaks of “some pending problems in production and operations”, giving as an example the “still too high” impact of “intensified” competition or insufficient market demand.
Zhao calls for “detailing and implementing” the measures announced by the authorities to boost production and demand. Among this is a “renewal plan” equivalent to more than $700 billion, focused on replacing machinery and delivering consumer goods – for example, household appliances – as part of payment to acquire new ones.
ONE also published its PMI for the non-manufacturing sector, which measures activity in the services and construction sectors and which marked its highest point since June, when it stood at 53 integers, 1.6 above the February level (51.4.)
Activity in construction went from 53.5 to 56.2 points, and that of the service sector, from 51 to 52.4.
The composite PMI, which combines the evolution of manufacturing and non-manufacturing industries, rose from 50.9 points in February to 52.7 in March, its best position since May 2023. EFE
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