Chinese manufacturing on the rise

Chinese manufacturing activity rose in March, according to a government survey released yesterday.

The China Federation of Logistics and Purchasing said its purchasing managers’ index (PMI) rose 2.1 points to 53.1 in March, up from February’s 51.0 and January’s 50.5.

A reading above 50 signifies expansion in manufacturing activity.

But there are contrasting indicators coming out of the fast-growing economic superpower.

The private HSBC Bank PMI index, which reflects trends in the export manufacturing sector, has remained below 50 for five months.

The data confirmed a further slowdown of growth momentum, weighed on by weakening new export orders, HSBC economist Hongbin Qu said.

But he expects Chinese government tax breaks and government spending will help the economy rebound in the second half of the year.

 

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