China’s manufacturing expands in March after five months

[ad_1]

BEIJING (AP) – Manufacturing in China grew in March after a record high contract for five consecutive monthsaccording to an official survey of factory managers released on Sunday, it shows a resumption of industrial activity after the New Year holidays.

The purchasing managers’ index, or PMI, rose from 49.1 in February to 50.8 in March. The PMI is on a scale of up to 100, with 50 marking the boundary between expansion and contraction.

The monthly manufacturing PMI has generally been below 50 over the past 12 months: Except for this month, factory activity only increased in September.

The National Bureau of Statistics’ chief analyst, Zhao Qinghe, said the market had recovered as companies resumed production and accelerated production after the Lunar New Year holiday. Many factories stopped working during the holiday, with media reports showing that workers in some companies have left for 140 days from the end of 2023 due to the lack of new laws.

Zhao said the survey also highlighted some of the challenges the industry faced, including increased competition in the industry and a lack of market share.

At the annual meeting of National People’s Congress in March, China said it would encouraging consumers to get rid of old equipment and sell their cars on electric vehicles to help boost domestic demand. And it said 10.4 billion yuan ($1.4 billion) will go to upgrade factories and make technology.

Zhao said that policies that promote trade in goods and upgrade capital equipment still need to be put in place to support the high-quality development of the manufacturing industry.

According to a survey released on Sunday, the non-manufacturing PMI rose to 53 from 51.4 in February. The reading is the highest since June 2023.

The recovery of the world’s second-largest economy following the shock of the pandemic has faced many obstacles, one of the biggest the downturn in the real estate industry After the government banned excessive lending to home builders.

The ruling Communist Party’s target is to expand the economy by around 5% this year, which economists say will be difficult to achieve.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *