China’s PMI reaches 50.8 in March

China’s manufacturing index returned to positive territory for the first time in six months, reaching 50.8 in March, up from 49.1 in February, Reuters reported on Wednesday, citing PMI survey.

This exceeded expectations and signals potential acceleration in commodity demand from the world’s largest buyer of natural resources.

The positive data, along with other recent indicators like retail sales and factory output, suggest China’s economy is gaining momentum.

However, challenges remain in the property sector. Despite this, ongoing stimulus measures are expected to support economic growth.

Import trends for major commodities may have already anticipated the economic recovery.

Commenting on the China General Composite PMI data, Wang Zhe, senior economist at Caixin Insight Group said: “In March 2024, the Caixin China General Composite PMI recorded 52.7, up 0.2 points from the previous month, marking its highest reading since May.”

“Growth in supply and demand in both the manufacturing and services sectors accelerated slightly, with improved exports and sustained market optimism. However, employment in both sectors continued to contract, while input and output prices remained low, indicating that sluggish demand persisted.”