China’s official purchasing managers’ index (PMI) climbed to 51.0 in February, thanks to the first increase in export orders in four months, Reuters reported. The February PMI figure is up from January’s 50.5 and surpassed analysts’ expectations of around 50.7. The new export orders sub-index rose to 51.1 last month, up from 46.9 in January and the highest reading since May of last year. Zhang Liqun at the Development Research Center of the State Council attributed February’s manufacturing expansion to growth in heavy industries, but predicted that export and investment demand will slow in coming months. He also noted an uptick in input prices, suggesting that China may be importing inflation. Despite the increase in exports, China’s manufacturing sector still faces weak demand from its primary US and European markets.
Categories