The HSBC flash manufacturing Purchasing Managers' Index (PMI) for China, a gauge of nationwide manufacturing activity, rose to 52.5 in March, up from 51.5 in February, HSBC Holdings PLC said. China's new export orders increased in March, accelerating domestic manufacturing growth, HSBC said.
In February, China's PMI had dropped to a seven-month low, with the month-on-month decrease in February being the largest decline since April 2004.
HSBC chief economist for China Hongbin Qu stated that the growth of the manufacturing sector in China has bounced back a little this month after slowing in February. This should reduce concerns about a sharp slowdown in growth, he said. In addition, the Producer's Price Index (PMI) for manufactured products and the purchasing price index in China have become stable, which means that the central government's tight financial policy is having an effect in controlling inflation.