The Purchasing Managers’ Index (PMI) is considered an important indicator of the mood in the Chinese economy. It has now risen again for the first time in six months.
Manufacturing activity in China rose for the first time in six months in March, according to an official survey of Chinese manufacturers. The official Purchasing Managers’ Index (PMI) rose to 50.8 points, up 1.7 percentage points compared to the previous month, as the statistics office in Beijing announced.
This seems to have brightened the mood in the management ranks of the companies surveyed, as the PMI value exceeded the important threshold of 50 points again after six months. From this point onwards, the statisticians assume that business activity will expand.
Still below the value from March 2023
The Purchasing Managers’ Index is an important leading indicator for analysts and political decision-makers. The statistics office explained the increase with the resumption of work after the Spring Festival – the multi-day holiday week in February during which many factories across the country are idle.
However, in a year-on-year comparison, the PMI for manufacturing companies was still well below the 51.9 points in March 2023. The ongoing real estate crisis, weak consumption on the domestic market and poor foreign trade balances weighed on the performance of the world’s second largest economy for a long time. However, Beijing has already tried to counteract the problems with moderate measures.