May 23, 2024

Brighton Journal

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

Factory activity in China is growing further, posting its highest reading in nearly 11 years
  • China’s official manufacturing PMI came in at 52.6 in February, above the 50-point level that separates growth from contraction.
  • Derek Scissors, chief economist at China Beige Book, expects to see an improvement in consumption later this year.

A worker processes high-quality yarn at a new material workshop in Zaozhuang, east China’s Shandong Province, February 27, 2023.

Future Publishing | Future Publishing | Getty Images

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.