Official PMI of China Reveals Expansion in March Factory Activity
China's distressed manufacturing sector seems to be picking up after all. An official survey revealed on Friday showed, China's manufacturing activity unpredictably expanded in March. That's the first boost in activity in the sector noted in last nine months. It also adds to hopes that mounting pressure on China's economy might be easing after all.
China's official Purchasing Managers' Index (PMI) climbed to 50.2 in March. In February it was 49. However, the increase in March is just slightly more than the 50 mark which separates monthly growth from contraction. The analysts' had predicted the PMI to be 49.3.
February's reading marked the weakest since 2011. But several of the economists said the low figures might have been due to the long Lunar New Year holiday.
Hopes were fueled even more by the latest industrial profit data that revealed combined earnings scaled 4.8 percent in the initial two months of 2016 compared to 2015. That ended a decline of seven consecutive months.
Even the real estate sector in the world's second largest economy marked some optimism as investments grew three percent in January and February this year, on an yearly basis.