BEIJING: The Service Survey Center with China’s National Bureau of Statistics and the China Federation of Logistics and Purchasing unveiled Sunday’s figures, which rendered overseas investors and entities bullish.
The figures included the nation’s manufacturing PMI, non-manufacturing PMI, and comprehensive PMI output index, which stood at 50.8 percent, 53.0 percent and 52.7 percent respectively, with each climbing 1.7, 1.6 and 1.8 points.
Many overseas individuals and institutions have said that the synchronous rise of the three major indices in March indicates an acceleration in Chinese business operations, further expanding the prosperity of the manufacturing industry. They believe that China’s economic development prospects continue to improve.
In a recent interview with Xinhua, Brendan Ahern, a U.S. veteran investor, said that China’s manufacturing PMI surpassing expectations in March indicates accelerated economic growth following the Spring Festival. He noted that various macroeconomic policies are proving effective. This, he believes, is a positive sign for both the Chinese and global economies.
Ahern, chief investment officer with U.S.-based asset management firm Krane Funds Advisors LLC, a specialist investment management firm focused on China, Climate, and other uncorrelated assets, highlighted the strong performance of China’s automotive sector, particularly electric vehicles, in March, indicating the positive effects of policy support.
An article published on Forexlive said that China’s economy kicked off 2024 on a “reasonably strong note,” with March’s manufacturing PMI outperforming expectations, and the data in January and February have “surprised to the upside.”
Institutions like Citi and several analysts have consequently “raised growth forecasts” for the Chinese economy upwards, the article said.
Reuters indicates that a private-sector survey unveiled on Wednesday signaled a “tentative recovery” in the world’s second-largest economy. This development has also led analysts to upwardly revise China’s economic growth forecast for this year.
CNBC revealed that China’s official manufacturing PMI came in at 50.8 percent in March, its “strongest reading since March last year.”
China’s official non-manufacturing activity survey recorded its strongest reading since June, contributing to positive recent export and retail sales data, it added.
The latest economic data from China once again signals positivity, particularly in the manufacturing sector. With robust support policies driving industrial activity, China’s economy continues to demonstrate vitality. The growth and revival of economic indicators in manufacturing activities also imply an uplift in employment, Sebastian Schulz, a researcher at the National University of La Plata in Argentina, told Xinhua.
Christine Susanna Tjhin, director of Strategic Communication and Research at Gentala Institute, remarked that China’s economy shows considerable resilience, with the rise in manufacturing PMI signaling positive signs of its economic recovery.
She noted that China’s rapid development in high-tech industries and continuous enhancement of comprehensive innovation capabilities have created favorable conditions for sustained, healthy, and stable economic growth.
Barra Kukuh Mamia, a senior macroeconomist at PT Bank Central Asia, said that China is currently “attaching more importance to innovation and cutting-edge technologies, and is constantly moving towards an innovation-oriented country,” with a number of top-notch industries.
“In the long run, investment in these high-tech industries will have a huge driving effect on economic development,” he said. “And I believe it’ll greatly improve China’s productivity levels.”
