BEIJING: China factory activity showed growth at its fastest pace in three months, driven by a surge in manufacturing output and new orders, according to a private-sector survey. The Caixin Manufacturing Purchasing Managers’ Index (PMI) for February climbed to 50.8, marking five consecutive months of expansion.
The boost was largely fuelled by increased production as factories ramped up operations to meet demand following the Spring Festival holiday. The Caixin survey, which focuses on mid-small sized private manufacturers, indicated stronger business confidence and improving market conditions.
This trend aligns with China’s official PMI data, which has reflected steady recovery in the manufacturing sector. Official figures from the National Bureau of Statistics (NBS) showed the non-manufacturing business activity index also rose to 50.4% in February, up from January’s 50.2%.
A PMI reading above 50 signifies expansion, while below 50 indicates contraction. The sustained upward movement suggests a stabilising economy, supported by domestic demand and government policies aimed at boosting growth.
China’s manufacturing sector has been navigating challenges such as fluctuating global demand and supply chain disruptions. However, February’s data signals resilience, with businesses seeing improved order volumes and a gradual return to pre-pandemic levels of activity.
As China continues its economic recovery, analysts anticipate further growth in industrial production, provided market conditions remain favourable.
