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.