After recording one of the worst years in more than 50 years, Chinese manufacturing activity rose the most in over a decade last month.
According to official data released on Wednesday by China’s National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) in the world’s second-largest economy, rose from 50.1 in January to 52.6 in February.
Meanwhile, a private sector survey also showed activity increasing for the first time in seven months.
The latest manufacturing purchasing managers’ index (PMI) data from China came in much higher than markets had anticipated. Analysts had expected China’s National Bureau of Statistics to report a more modest increase to 50.5.
Readings above the 50 mark indicate an economy in expansion, whilst readings below the 50 mark indicate an economy in contraction.
Chinese COVID-19 Rebound
The latest economic news from China shows the effect that the easing of lockdown restrictions in the last month of 2022 had on the Chinese economy.
Last year saw China impose strict restrictions as the Omricon strain of COVID spread throughout the country. As a result, China endured a difficult year economically.
Julian Evans-Pritchard, head of China economics at Capital Economics said of the data:
“The high PMI readings partly reflect the economy’s weak starting point coming into this year and are likely to drop back before long as the pace of the recovery slows,”
“We had already been expecting a rapid near-term rebound, but the latest data suggest that even our above-consensus forecasts for growth of 5.5% this year may prove too conservative.”
