Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Workers Sold acid batteries in the Leoch International Technology Ltd. factory in Saltillo, Coahuila, Mexico, on Monday, October 7, 2024.
Mauricio Palos | Bloomberg | Getty images
China’s factory activity expanded at its fastest rate in three months to 50.8 In February, A private sector survey was shown on Monday, When millions of migrant workers returned to work after a holiday lunar lunar extended.
The Global Manufacturing Purchase Management Index of Caixin/S&P Global de Caixin/S&P exceeded the prognosis of the 50.3 Reuters survey, which also accelerates from 50.1 in January and 50.5 last December.
The PMI of manufacture of the private sector has remained above the threshold of 50 that separates the expansion of the contraction since last October.
This private survey reading on Monday continued The official manufacturing PMI Launched on Saturday, which also showed that China’s factory activity expanded to the fastest rate since November.
The official PMI rose to 50.2 in February 49.1 in January, According to the National Statistics Office. The non -manufacturing PMI, which includes services and construction, also rose to 50.4 from 50.2 in January.
The figures occurred when economists marked that Fresh US tariffs could press the country’s manufacturing activity, which represented a quarter of China’s GDP last year, and abalished the role of exports as a key growth driver this year.
In February, the new export orders grew at the fastest rate since last April, according to Monday’s survey, as the demand was strengthened with foreign clients. “
The strongest external demand for Chinese manufactured goods could be due to the fact that American importers continue with tariffs in the first instance in advance of even higher levies, he said in a note Zichun Huang, a China economist in Capital Economics.
The president of the United States, Donald Trump, announced last week to impose Additional 10% rates on Chinese products – In addition to 10% who raised in China on February 4. Trump had threatened with 60% tariffs on China on his campaign path.
Additional rates are scheduled to enter into force on March 4, coinciding with An annual high profile meeting In Beijing, where Chinese authorities are expected to present economic objectives by 2025 and a new political support.
While attention is now in potential Beijing countermeasuresInvestors also expect more government details about a broad stimulus plan to underpin the deceleration economy, including increased fiscal expense to boost domestic demand and defend themselves against persistent disinflar pressures.
Irregular recovery
While a combination of fiscal support and “front rate” helped China’s economy recover some impulse in February, it is likely that general growth in this quarter decreases, Huang of Economics Capital said.
“Unless leadership reveals a larger stimulus than expected in the National People Congress, it is difficult to see how a deceleration can be avoided this year,” said Huang.
Plagued by dazzled internal consumption, production prices in factories have remained under pressure, particularly consumer and investment goods that experienced more clear prices, according to Monday’s survey.
Earning this profit margin, costs for copper and certain chemicals have overcome, according to the survey.
Employment in the manufacturing sector also fell to a minimum of almost five years, since manufacturers continued to prioritize cost reductions, particularly among producers of consumer goods.
