A Chinese manufacturing gauge rose to an 11-month high, indicating a recovery in the world’s second-largest economy is sustaining momentum.
The Purchasing Managers’ Index was 50.9 in March, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compares with 50.1 in February and the 51.2 median estimate of 26 analysts surveyed by Bloomberg News. Readings above 50 indicate expansion.
A pickup in manufacturing will help the new government under Premier Li Keqiang sustain a rebound after factory output had the weakest January-February growth since 2009 and Goldman Sachs Group Inc. questioned the strength of exports. Faster expansion may also fuel inflation, spurring tighter monetary policy from the central bank.