According to a poll released on Wednesday, China’s manufacturing activity probably increased at a slower rate in March, indicating that the economic recovery remains uneven given the weak global demand and the real estate market downturn.
According to the consensus prediction of analysts in a Reuters survey, the official manufacturing purchasing managers’ index (PMI) will have dropped to 51.5 in March from 52.6 in February, which was the highest rate in more than a decade.
A monthly index reading above 50 suggests increased activity, while a reading below 50 indicates decreased activity.
In the first two months of 2023, the second-largest economy in the world saw a slow comeback. Retail sales increased 3.5% year over year, and industrial output increased by 2.4%, according to official data.
But, given that industrial operations are still battling to fully recover from the long-lasting consequences of Beijing’s lengthy zero-COVID policy, which it stopped in December, the manufacturing sector’s recovery may take some time. The uncertainty caused by the global banking crisis and its effects on other economies will also have an impact on demand for Chinese goods, putting additional strain on suppliers.
After notably missing its objective for 2022, China has set a moderate annual growth target of roughly 5% this year.
According to state media on Monday, Premier Li Qiang declared that the government will maintain a certain level of economic growth as it accelerated the shift to higher quality growth.
On Friday, the government will disclose the official manufacturing PMI, which mostly focuses on large, state-owned businesses, as well as its services sector survey.