China’s economy is showing strong signs of recovery as key indicators point to growth in both manufacturing and services sectors in February.
The Purchasing Managers’ Index (PMI) for China’s manufacturing sector rose to 50.2 in February, up from 49.1 in January, signaling a return to expansion territory, according to data from the National Bureau of Statistics (NBS). A PMI reading above 50 indicates growth, while below 50 reflects contraction.
Zhao Qinghe, a senior statistician at the NBS, attributed the positive figures to enterprises resuming production after the Spring Festival holiday. The sub-indices for production and new orders also showed strength, standing at 52.5 and 51.1 respectively.
The equipment manufacturing and high-tech manufacturing sectors performed particularly well, with PMIs of 50.8 and 50.9. This suggests a robust rebound in industries critical to technological advancement and innovation.
China’s non-manufacturing sector also saw growth, with its PMI edging up to 50.4 in February from 50.2 in January. Sectors such as air transport, postal services, telecommunications, and financial services reported business activity indices above 55, indicating vigorous expansion.
However, industries related to consumer spending like retail, accommodation, and catering experienced declines. Zhao noted that this was influenced by intensive purchasing before the Spring Festival and a natural decrease in activity afterward.
The construction sector showed promising signs, with its sub-index climbing to 52.7, marking a 3.4 percentage point increase from the previous month.
Overall, China’s composite PMI, which combines manufacturing and non-manufacturing activity, rose to 51.1 in February, up from 50.1 in January. “All three key indicators are in expansion territory, reflecting that an overall recovery is gathering speed,” Zhao explained.
Wen Tao, an analyst at the China Logistics Information Center, highlighted that the recovery is structural, backed by seasonal factors and supportive policies. “It’s driven by both supply and demand sides. Notably, several sub-indices reached recent highs last month, indicating high-quality economic recovery,” Wen said.
