Mainland Factory Activity Gains Steam In March

Factory activity in China picked up in March, official data showed on Wednesday, as the country's economic recovery broadened after the Lunar New Year holiday.

The Purchasing Managers' Index (PMI), a key gauge of manufacturing activity, grew more than expected to 51.9 -- from 50.6 in February -- according to the National Bureau of Statistics, with production accelerating after the holiday lull and major economies abroad recovering from coronavirus slowdowns as well.

Non-manufacturing PMI made a significant rebound to 56.3, higher than the Bloomberg forecast of 52.0 and pointing to better performance in service industries and higher expectations for hard-hit sectors such as accommodation.

NBS senior statistician Zhao Qinghe said that with China's control of the Covid-19 outbreak, consumer demand returned and "the service industry accelerated its recovery".

For manufacturing, Zhao added that companies -- including smaller ones -- have done better as well, although there have been some delays in imported raw materials due to the Covid-19 spread abroad, leading to higher prices and longer delivery times. (AFP)