China’s Factory Activity Grows Further, Marks Its Highest Reading In Nearly 11 Years  

 

• China’s factory activity for February bounced further into expansion territory, according to data from the National Bureau of Statistics. The official manufacturing purchasing managers’ index rose to 52.6 in February – above the 50-point mark that separates growth from contraction. That marks the highest reading since April 2012, when it hit 53.5.
• The government said February’s reading showed continued improvement in the climate for production and business, noting that the total volume of activity “significantly increased” as well.
• “The broad-based obvious improvements for both Manufacturing and non-Manufacturing PMIs in February reflect the solid momentum of post-reopening recovery,” economists at Citi said in a note. Citi economists added that while expectations for stimulus policies are low, the People’s Bank of China would be “mindful of inflation risks and may tilt to a natural policy once the economy is back on track.”
• Shortly after China’s factory activity data was released, Moody’s announced that it expects China’s economy to grow by 5% for 2023, an upgrade from its previous outlook of 4% growth, while noting growth will likely decline over the medium term.

(Source: CNBC)