China’s manufacturing sector returned to growth in March after six months of contraction, according to official data released Wednesday, suggesting the world’s second-largest economy is gaining momentum. The Purchasing Managers’ Index (PMI) rose to 50.8 from February’s 49.1, crossing the 50-point threshold that separates expansion from contraction.
The National Bureau of Statistics (NBS) attributed the rebound to improved domestic demand and increased factory activity following the Lunar New Year holiday. “Production and new orders both showed clear recovery signs,” an NBS official stated in the report. Analysts noted the figures align with Beijing’s targeted stimulus measures, including recent interest rate cuts and manufacturing subsidies.
However, some economists expressed caution. “While the PMI rebound is encouraging, we need to see sustained improvement in export orders and private investment,” said a Hong Kong-based analyst at a major international bank. Separate data showed the non-manufacturing PMI also rose to 53.0, indicating stronger service sector activity.
The positive figures come as Chinese policymakers attempt to stabilize an economy facing property market turmoil and weak consumer confidence. Market watchers will scrutinize April data to determine whether this marks a temporary holiday bounce or the beginning of a durable recovery.