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China manufacturing PMI at nine-month high

China’s manufacturing activity reached a nine-month high in March, coinciding with stimulus measures outlined by the Government, Chinese state-run news agency Xinhua reported last week.

The National Bureau of Statistics of China announced the official manufacturing Purchasing Managers’ Index (PMI) stood at 50.2 in March, the highest level since June last year. A reading above 50 indicates expansion in activity while a reading below 50 reflects contraction.

Zhao Qinghe, a senior statistician at the bureau, was quoted saying the rebound in manufacturing activity was due to measures implemented by the Government in support of economic growth, helping to create a rising demand for China’s manufacturing exports and increasing domestic demand for manufactured goods.

According to Xinhua, China’s administration has cut interest rates, reduced taxes and tackled industrial overcapacity in a bid to strengthen growth in the manufacturing sector.

The statistics bureau also said China’s non-manufacturing PMI rose to 53.8 in March, up from 52.7 in February.