After five consecutive months of contraction, the Chinese mainland's manufacturing sector made a strong rebound in March, signaling a positive turn in economic momentum. The Purchasing Managers' Index (PMI) climbed to 50.8 from 49.1 in February, pushing the sector back into expansion territory.
Zhang Liqun, a special analyst with the China Federation of Logistics and Purchasing, attributes this uptick to both seasonal factors and a broader recovery in the macro economy. He emphasized that ongoing policies aimed at stabilizing growth and boosting market confidence are beginning to take effect.
Out of 21 surveyed sectors, 15 reported expansion in March, a significant increase from the previous month. The sub-index for production rose to 52.2, while new orders surged to 53, highlighting robust recovery in both production and demand.
Companies ramped up production following the Spring Festival holiday, leading to increased market activity. Additionally, efforts to renew equipment have injected vitality into the market, although Zhao Qinghe, a senior NBS statistician, noted that more detailed policies are needed to sustain this growth.
Exports and imports also saw favorable movements, particularly in the chemical fiber, automobile, and communication device sectors. Small enterprises experienced their PMI rise above the critical 50 mark for the first time in a year, while large enterprises saw their PMI increase to 51.1.
Cai Jin, vice-president of the China Federation of Logistics and Purchasing, highlighted that positive PMI readings across companies of all sizes indicate stronger coordination in China’s economic development. The business outlook remains optimistic, with companies across various sectors expressing confidence in recent developments.
Non-manufacturing activities, including services and construction, continued their growth streak with a PMI of 53.0 in March, up from 51.4 in February. Sectors such as postal services, telecommunications, and financial services are performing exceptionally well, with activity indexes averaging above 60.
Experts acknowledge the steady recovery but caution against challenges like intense market competition and insufficient demand. Zhao Qinghe advocates for policies that support large-scale equipment upgrades and consumer goods trade-ins to underpin the manufacturing sector's growth.
Overall, the synergy between manufacturing and non-manufacturing sectors is poised to further boost the Chinese mainland's economic rebound.
Reference(s):
China's manufacturing activity expands in March, official PMI shows
cgtn.com
