PMI data shows China's economy returning to expansion in March

China's manufacturing PMI rebounded to a 12-month high of 50.4 in March, rising 1.4 percentage points from the previous month and returning to expansion territory, official data showed on Tuesday.

The improvement came as companies resumed work and production following the Spring Festival holiday, boosting overall market activity, according to Huo Lihui, chief statistician at the Service Industry Survey Center of the National Bureau of Statistics.

Key sectors, including agricultural and sideline food processing, as well as non-ferrous metal smelting and rolling, saw both production and new order indices surpass 55.0, pointing to strong momentum in output and demand.

High-tech manufacturing maintained robust expansion, with its PMI standing at 52.1 — marking 14 consecutive months above the boom-bust line and reflecting steady upward momentum.

The non-manufacturing sector also improved, with its business activity index edging up 0.6 percentage points to 50.1.

The service sector index rose 0.5 points to 50.2. Sectors including railway transport, telecommunications, radio, television and satellite transmission, monetary and financial services, and insurance all stayed in high expansion above 55.0, with brisk growth in business volume.

Supported by a gradual recovery in construction projects nationwide after the holiday, the construction business activity index climbed 1.1 percentage points to 49.3, Huo noted.

(Cover via VCG)