2018.04.0121:54:00UTC+00China Manufacturing Growth Accelerates in March - PMI

Growth in China's manufacturing sector accelerated in March as authorities lifted winter pollution restrictions and steel mills raised production as construction activity swings back into high gear.

The official Purchasing Managers' Index (PMI) increased to 51.5 in March, from 50.3 in February, and was well above the 50-point mark that separates growth from contraction on a monthly basis.

The findings add to a growing amount of data which suggest that China's economy has carried more momentum into the first quarter from last year than analysts had expected, which should keep synchronised global growth on track for a while longer even as trade tensions build.

February's print had been the lowest in 1-½ years, but many analysts suspected it was due to disruptions related to the long Lunar New Year holidays, not a sharp decline in consumption.

The March survey showed manufacturers shifted into higher gear as usual as seasonal demand picked up at home and abroad. The sub-index for output soared to 53.1 from 50.3 in February, while total new orders rose to 53.3 from 51.0 and export orders climbed to 51.3 from 49.0.

The China Logistics Information Centre, in a commentary on the PMI figures, said it expected first-quarter economic growth to be about 6.8 percent. Early this year, economists polled by Reuters were pencilling in a fade to around 6.6 percent.

Large companies saw a modest pickup in growth, while small firms' activity expanded marginally after shrinking in February.