Strong recovery in China's manufacturing indicator

Manufacturing activity in China posted its fastest monthly growth in 11 years in February as factories reopened following the Lunar New Year holiday. The manufacturing purchasing managers’ index (manufacturing PMI) prepared by the National Bureau of Statistics rose to 52.6 points in February from 50.1 in January, the fastest increase since April 2012. Economists had expected the manufacturing PMI to be 50.5-50.6 in February. The non-manufacturing PMI also rose to 56.3 points from 54.4 in February, the fastest increase since March 2021. The composite PMI also rose to 56.4 points in February from 52.9 in January. The PMI figures are expected to provide a positive outlook for markets ahead of China’s annual National People’s Congress meetings, which begin this weekend. The government is expected to unveil new support policies to bolster the economic recovery following the National People’s Congress meetings.