Chinese manufacturing's modest rise

Q: Did the March PMI meet market expectations?

Economists described the reading as a decent bounce, but it disappointed market expectations for a more convincing improvement to 51.2.

Manufacturing conditions in China have improved for five consecutive months. The HSBC China manufacturing purchasing managers' index rose to 51.6 in March, up from 50.4 in February, which signals a "modest improvement", economists say. Production and purchasing both increased in March. Production increased for the fifth month in a row, the second-fastest rate in two years, while purchasing rose for the sixth consecutive month. A figure of more than 50 indicates rising growth. Economists said it was a "decent bounce" but it still disappointed market expectations for a more convincing improvement to 51.2.

By InvestSMART · 2 Apr 2013

By InvestSMART ·
2 Apr 2013

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Frequently Asked Questions about this Article…

What was the HSBC China manufacturing PMI reading for March and how did it change from February?

The HSBC China manufacturing PMI rose to 51.6 in March, up from 50.4 in February, signaling a modest improvement in manufacturing conditions.

What does a PMI figure above 50 mean for China’s manufacturing sector?

A PMI reading above 50 indicates rising growth in the manufacturing sector, meaning activity is expanding rather than contracting.

Which parts of China’s manufacturing activity improved in March?

Both production and purchasing increased in March. Production increased for the fifth month in a row, and purchasing rose for the sixth consecutive month.

How strong was the production increase in March?

Production rose for the fifth consecutive month and did so at the second-fastest rate seen in the past two years, according to the report.

Did the March PMI meet market expectations?

Economists described the reading as a "decent bounce," but it disappointed market expectations for a more convincing improvement to 51.2.

How many consecutive months have China’s manufacturing conditions improved?

Manufacturing conditions in China have improved for five consecutive months.

How long has purchasing activity been rising in China’s manufacturing sector?

Purchasing activity has been rising for six consecutive months.

Why do analysts describe the March PMI rise as a ‘modest improvement’?

The PMI increase to 51.6 signals expansion, but commentators called it modest because it fell short of market hopes for a more convincing uptick, even if it was a respectable bounce from February’s 50.4.