China's Private Sector Returns To Growth Unexpectedly
31 March 2020 - 2:15PM
RTTF2
China's private sector returned to expansion territory
unexpectedly in March despite the outbreak of coronavirus weighing
on economic activity, official survey data showed Tuesday.
The composite output index climbed to 53.0 from 28.9 a month
ago, survey results published by the National Bureau of Statistics
showed Tuesday. A score above 50 indicates expansion.
The manufacturing Purchasing Managers' Index rose sharply to
52.0 from 35.7 in February. The reading was expected to rise to
44.8.
Likewise, the non-manufacturing PMI advanced 22.7 points to 52.3
in the previous month. Economists had forecast the reading to climb
to 42.0.
The NBS said improvement largely reflects the low base effect
compared to February. Factories largely resumed operations but it
does not mean that the actual production returned to pre epidemic
level.
The statistical office noted that the spread of virus globally
has hit trade and bring severe challenges to the Chinese
economy.
That improvement in PMI could be brief as these are
month-on-month comparisons for survey respondents, Iris Pang, an
ING economist said. But for the time being the data provide some
strength to the yuan.
The ING economist noted that PMI survey asks respondents their
views on a monthly comparison so the next set of PMI survey results
could point to a fall in activity again in April when compared to
March.
It is worth highlighting that the technology war and the trade
war can also return once the US gets on top of its own Covid-19
problems, she added.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2024 to May 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From May 2023 to May 2024