The official manufacturing purchasing managers’ index (PMI) stood at 51.9, against 52.6 in February, according to data from the National Bureau of Statistics (NBS), above the 50-point mark that separates expansion and contraction in activity on a monthly basis.
That slightly exceeded expectations of 51.5 tipped by economists in a Reuters poll, and led to the yuan strengthening against the dollar. The February figure had grown at the fastest pace in more than a decade.
China’s economic activity picked up in the first two months of 2023 as consumption and infrastructure investment drove a recovery after the end of COVID-19 disruptions and retail sales swung back to growth.
Nomura economists said the strong data suggested China’s economy had reached a “sweet spot” after the end of property tightening measures and the zero-COVID policy.
“However, amid rapidly worsening geopolitical tensions and financial concerns outside of China, this may…
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