Factory activity in China is growing further, posting its highest reading in nearly 11 years

Factory activity in China for the month of February rebounded further into expansion territory, according to data from the National Bureau of Statistics.

the Official Manufacturing PMI It rose to 52.6 in February – above the 50-point mark that separates growth from contraction. This is the highest reading since April 2012, when it reached 53.5.

The February PMI reading is also higher than the 50.1 reported for January and above expectations of 50.5, according to economists polled by Reuters.

The non-manufacturing PMI also grew to 56.3 from January’s reading of 54.4, when it saw a sharp improvement supported by a recovery in services and construction activity.

The onshore Chinese yuan settled at 6.9325 against the US dollar while the offshore yuan rose 0.15% to 6.9480 against the dollar.

Derek Scissors, chief economist for China Beige Book, told CNBC’s “Squawk Box Asia” program that he expects to see consumption pick up later this year — buoyed by any announcements from upcoming NPC meetings.

“I think April is really the time when consumers will take cues from the National People’s Congress meetings in March and the announcements made there,” Scissors said.

He added, “In April, we should see where the Chinese consumption trajectory goes. It will be better than last year, but it won’t be much better and people who depend on that may be disappointed.”

The Chinese National Party Congress kicked off on Sunday.