China industries expand in March; PMI rises to 55.1%

SHANGHAI (ICIS news)--China’s March purchasing managers’ index (PMI) for the manufacturing sector rose 3.1 percentage points to 55.1% from February, highlighting a strengthening recovery in industrial production, the China Federation of Logistics & Purchasing (CFLP) said on Thursday.

New order index surged 4.4 percentage points to 58.1%, while and production index was up 4.1 percentage points 58.4% over the same period, according to the CFLP data.

Trade indications were also good in March, with the import index rising 4.6 percentage points to 53.7% and the export index gaining 4.2 percentage points to 54.5% from February, based on the data.

"We can’t be very sure about the uptrend for the export sector ... because it still hinges on global investments recovery," Zhang Liqun, a researcher at the Development Research Centre of the State Council (DRC), said in Mandarin.

The PMI data signified three key trends, namely, growing domestic demand, faster industrial production and increasing imports, said CFLP official.

The official, however, said that rising commodity prices amid a surge in raw material and energy values needed to be closely monitored.

The PMI serves as a barometer for the monthly performance of China’s factories and is based on surveys from purchasing and supply managers at more than 700 manufacturers across the country.

A reading of above 50% suggests economic expansion, while one below 50% indicates contraction.

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