Production growth in China the strongest in the year

China has set a growth target of around five percent for this year, while setting a deficit-to-gross domestic product (GDP) ratio of three percent for the year and reiterating a plan to double "high-quality growth" and output.

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Illustration, Photo: Shutterstock
Illustration, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Factory activity in China rose at its strongest pace in more than a year in March, a private survey showed on Monday, in signs of stabilizing growth in the world's second-largest economy.

The Caixin/S&P Global manufacturing PMI in China was 51,1 in March, the strongest since February, after reading 50,9 in February.

Economists had expected the reading to reach 51, according to a Reuters poll. The 50-point mark separates expansion from contraction, reports Biznis.ba.

This data is confirmed by another official survey of manufacturing activity, which exceeded market expectations and was the strongest in 11 months. China's official survey of non-manufacturing activity posted its strongest reading since June, adding to encouraging recent data on exports and retail sales.

"Overall, the manufacturing sector continued to improve in March, with supply and demand expansion accelerating and overseas demand rising," said Wang Zhe, senior economist at Caixin Insight Group, in a research release.

China's National Bureau of Statistics released survey data on Sunday showing the country's official manufacturing PMI stood at 50,8 in March, its strongest reading since March last year and also stronger than expectations of 49,9 in a Reuters poll.

These surveys are usually the first points of economic data available each month and provide insight into the state of China's economy.

China has set a growth target of around five percent for this year, while setting a deficit-to-gross domestic product (GDP) ratio of three percent for the year and reiterating a plan to double "high-quality growth" and output.

Given the high data for last year, several economists warned that Beijing may have to resort to stronger stimulus to meet its growth targets for this year.

The latest data points to some lingering concerns, particularly around pricing.

Producer prices in China have been falling for more than a year, while consumer prices have fallen in four of the last five months.

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