• Sector unexpectedly returned to growth for the first time in four months in March, according to the Caixin/Markit Manufacturing Purchasing Managers’ Index

• The private business survey released on Monday showed expansion at the strongest pace in eight months

Karen Yeung  

Orange Wang  

Published: 11:09am, 1 Apr, 2019

Karen Yeung joined the Post in 2017 after more than 15 years’ experience on global newswires in Hong Kong and Shanghai. She spent eight years in Shanghai and has received awards for best feature, analysis and agenda-setting.

Orange Wang covers the Chinese macroeconomy, and has many years of experience with China’s monetary and fiscal policy moves. He also covered global market and financial news for a long time, with a particular focus on new technologies and their influences on economic growth and society. Before joining the South China Morning Post, Orange worked as a Shanghai Correspondent for ET Net, a Hong Kong financial news agency.

China’s manufacturing sector unexpectedly returned to growth for the first time in four months in March, in a sign that government stimulus measures may be gaining traction and amid indications of progress in US-China trade talks.

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI), a private business survey released on Monday, expanded at the strongest pace in eight months in March as it rose to 50.8 from 49.9 in February.

It was the first time in four months that it rose above the 50-point mark that separates growth from contraction, and marks the highest level seen since July 2018.

Economists polled by Reuters had forecast the reading for March would stay unchanged at 49.9.

The Caixin/Markit data comes from a separate survey to the official government PMI, which was released on Sunday.

Government data also showed that both the official manufacturing and non-manufacturing PMIs for March had beaten forecasts. The official manufacturing PMI rose 1.3 points in March to 50.5, while the official non-manufacturing PMI gained 0.5 points to 54.8.