China factory activity up after five-month slump

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BEIJING – Monthly factory activity in China grew for the first time in half a year in a positive sign for policymakers seeking to revive the world’s second-largest economy.
The purchasing managers’ index (PMI) — a key measure of factory output — came in at 50.8 in March, according to the National Bureau of Statistics (NBS), up from 49.1 in February.
A PMI figure above 50 indicates an expansion of activity, while one below that indicates a contraction.
The last expansion in China’s monthly PMI was in September, with factory activity consistently negative since then, according to NBS data.
A poll by Bloomberg had predicted a return to positive territory in March, though at a more modest level of 50.1.
The increase is an encouraging sign for Beijing, which has struggled to spur an economic rebound since lifting stringent Covid control measures in late 2022.
A highly anticipated rebound has faced hurdles including a sustained crisis in the property sector, high youth unemployment and deflationary pressure.
A global slowdown, meanwhile, is weakening demand for Chinese products overseas.
Beijing announced in early March its goal of achieving five percent annual growth in 2024, a target considered ambitious by many economists.
Authorities have in recent months announced a series of targeted measures and the issuance of sovereign bonds to boost infrastructure spending and revive economic activity — with mixed results.