China announced that the official Purchasing Manager’s Index for March was 52.0, beating expectations for an economy hit by the coronavirus outbreak.
Reuters poll had expected the official PMI to come in at 45 for the month of March.
PMI readings above 50 indicate expansion, while those below that level signal contraction.
China’s National Bureau of Statistics said in its announcement of the PMI reading that there was continued improvement in the prevention and control of the outbreak in March, with a significant acceleration in the resumption of production.
Sub-indices for production, new orders and employment expanded, the bureau said.
The bureau attributed the expansionary PMI reading to the low base in February, but cautioned that it does not mean that the country’s economic activities have returned to normal levels.
Although March’s PMI reading was in the expansionary zone, it was just a few points above 50 — indicating a modest recovery and gradual resumption of economic activity, she added. There is still significant drag on China’s economy.
source: CNBC
