China's Manufacturing PMI at 52.6 in February... "Reopening Effect"

Thanks to the significant easing of quarantine policies and the reopening (economic normalization), China's manufacturing business index last month greatly exceeded expectations and rebounded compared to the previous month.

According to the National Bureau of Statistics of China on the 1st, the official manufacturing Purchasing Managers' Index (PMI) for February recorded 52.6. This figure significantly surpasses both the previous month's figure (50.1) and experts' forecast (50.5).

The manufacturing PMI is compiled by surveying purchasing managers from over 700 manufacturing companies nationwide on five categories: new orders, production, shipments, inventory, and employment. A reading above the baseline of 50 indicates an expansion phase in the economy, while a reading below 50 indicates a contraction phase.

The non-manufacturing (service sector) PMI showed 56.3 for the same month, also higher than the previous month's figure (54.4) and the forecast (55.0). The composite PMI rose further from the previous month's 52.9 to record 56.4.