admin
China’s economic recovery gathered pace in March, with gauges for manufacturing, services and construction activity remaining strong, boosting the outlook for growth this year.
The purchasing managers’ index for the non-manufacturing sector jumped to 58.2 in March, the highest level since May 2011, led by a surge in the construction sub-index to a record high.
The manufacturing PMI was above economists’ forecasts, at 51.9 in March, even though it eased slightly from February’s level.
A reading above 50 signals expansion from the previous month.
The PMIs are the first official indicators of economic activity for the month, showing the recovery is strengthening after stringent pandemic restrictions were dropped and Covid infection waves eased. Economists expect a rebound in consumer spending and strong government spending on infrastructure to help drive up growth in the world’s second-largest economy to 5.3 percent this year from just 3 percent in 2022.
Stocks in China and Hong Kong rose amid broad gains in Asia.
A gauge of Chinese shares listed in the financial hub jumped as much as 2.4 percent, leading the regional advance. The currency edged higher, with the offshore yuan strengthening 0.2 percent to 6.8603 per dollar as of 11:38 a.m. local time.
“The PMI indicates China’s economic recovery is on track,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
“The strong momentum will likely continue in the coming months,” he said, with recent government policy actions helping to boost confidence.
“We think GDP growth may surpass 6 percent this year,” he added.
The NBS said services activity picked up “as the effects of local governments measures to promote consumption kicked in” and households showed willingness to spend and travel. Warmer weather also helped to get construction projects going across the country, it said.
– Bloomberg
Online Reporter