The Chinese mainland's economic recovery gained significant momentum in February, as key indicators reflected robust performances across various sectors. According to official data, the purchasing managers' index (PMI) for both the manufacturing and non-manufacturing sectors demonstrated notable improvements, signaling a positive trend in the region's economic landscape.
The PMI for the manufacturing sector rose to 50.2 in February, marking an increase of 1.1 percentage points from the previous month and returning to the expansion zone. A PMI reading above 50 indicates economic expansion, while below 50 suggests contraction. Zhao Qinghe, a statistician at the National Bureau of Statistics (NBS), attributed the rise to factors such as enterprises resuming production post the Spring Festival holiday.
Further breaking down the data, the sub-indices for production and new orders reached 52.5 and 51.1, respectively. Additionally, the equipment manufacturing sector and high-tech manufacturing sector recorded PMIs of 50.8 and 50.9, showcasing steady growth.
On the non-manufacturing front, the PMI stood at 50.4 in February, a slight increase of 0.2 percentage points from the previous month, maintaining its position in the expansion territory. Business activity indices in sectors like air transport, postal services, telecommunications, radio, television, satellite transmission services, monetary and financial services, and capital market services remained robust, all staying above 55. This indicates a strong overall business volume, as highlighted by Zhao.
However, there was a notable decline in business activity indices within consumer-focused sectors such as retail, accommodation, and catering. This downturn was influenced by intensive purchasing ahead of the Spring Festival holiday and the diminishing effects of the holiday period thereafter.
The construction sub-index saw a substantial increase, reaching 52.7 in February, up by 3.4 percentage points from the previous month. Overall, China’s composite PMI was reported at 51.1, reflecting a 1 percentage point rise from January.
Wen Tao, an analyst at the China Logistics Information Center, commented, \"The recovery in February's manufacturing PMI is a structural one, backed by seasonal factors and a combination of policies, driven by both the supply and demand sides.\" He further noted that several sub-indices reached recent highs, indicating a high-quality economic recovery.
All three key indicators—the PMI for the manufacturing sector, the PMI for the non-manufacturing sector, and the composite PMI—remained in the expansion territory in February, underscoring the accelerating pace of the Chinese mainland's overall economic recovery.
Reference(s):
Key indicators show China's economic recovery gaining momentum
cgtn.com
