After five consecutive months of contraction, China’s manufacturing purchasing managers index (PMI) rose to 50.8% in March, signaling positive insights into the economic operation of the country. The high-tech manufacturing PMI also saw an increase, reaching 53.9%, while the small business PMI expanded for the first time in 12 months. These indicators reflect a new momentum in the Chinese economy, with expectations for market development becoming stable and improving.
PMI is used as a leading indicator to monitor macroeconomic trends internationally. As companies in China accelerated their resumption of work and production after the Spring Festival, market activity increased, pushing the manufacturing PMI back into the expansion range of over 50%. In terms of prosperity, 15 out of the 21 industries surveyed were in the expansion zone, indicating a positive trend in the economy.
Foreign media have taken note of China’s manufacturing activity surpassing the critical point, suggesting that the country’s economic development is stabilizing and picking up. Media outlets like Singapore’s “Lianhe Zaobao”, the British “Financial Times”, and The Wall Street Journal have all reported on the positive signals coming from China’s economic recovery.
Experts in the field have also commented on the significance of the manufacturing PMI increase. Wen Tao from the China Logistics Information Center noted that the PMI’s return to the expansion range reflects an improvement in China’s economic operation.
Looking at the sub-index changes in the manufacturing PMI, it is evident that positive factors promoting the recovery of China’s economy are accumulating and strengthening. High-tech manufacturing, consumer goods, and equipment manufacturing all saw increases in their PMI, reflecting a growing new momentum in these sectors. Small and medium-sized enterprises also showed improvement, with their PMI returning to the expansion range after running below 50% for several months.
Overall, there is a sense of enhanced confidence in market development, with the expectation index for production and operating activities on the rise. The strong foundation and potential for recovery in China’s economic development have been highlighted by experts like Jin Li from Southern University of Science and Technology.
With many indicators of China’s economy showing improvement before the release of the March manufacturing PMI data, there is a sense of optimism for the country’s economic recovery. As the world‘s second-largest economy, China’s continued rebound will contribute significantly to global economic growth.
Executives from multinational companies like Apple and GlaxoSmithKline have been visiting China intensively, showcasing the country’s attractiveness for investment. Tetsuro Honma from Panasonic Holdings Group mentioned the launch of a new production line in Suzhou, Jiangsu Province, indicating a shift in investment strategies towards the Chinese market.
Looking ahead, experts like Asian Development Bank President Masatsugu Asakawa believe that China will maintain a stable growth trajectory in the coming years, providing a boost to the global economy. With a positive outlook on China’s economic recovery, the country continues to attract interest and investment from around the world.