China's March Manufacturing PMI at 50.8... 'Economic Expansion' After Half a Year

The manufacturing Purchasing Managers' Index (PMI), which indicates China's economic trends, has surpassed the baseline for the first time in six months, signaling an entry into an economic expansion phase after half a year.

[Image source=Reuters Yonhap News]

On the 31st, the National Bureau of Statistics of China announced that the manufacturing PMI for March rose by 1.7 points from the previous month to 50.8. This figure exceeded the expert forecast of 50.1 provided by Bloomberg News and marked the highest level since March last year (51.9).

The PMI is an economic indicator based on surveys of corporate purchasing managers; a value above 50 indicates economic expansion, while a value below 50 signifies economic contraction.

China's manufacturing PMI first recorded 50.2 in September last year, marking the first time in six months it crossed the baseline, but it remained in contraction for five consecutive months from October of the same year until last month.

By company size, the PMI for large enterprises was 51.1, up 0.7 from the previous month, while the PMI for medium-sized enterprises increased by 1.5 to 50.6. The PMI for small enterprises rose by 3.9 to 50.3, with all exceeding the baseline.

China's non-manufacturing PMI for March this year was recorded at 53.0, up 1.6 from the previous month. The non-manufacturing PMI measures activity in construction and service industries.

China's non-manufacturing PMI peaked at 58.2 in March last year, then declined for five consecutive months before rebounding to 51.7 in September of the same year.