China’s PMI Reverses Trend from Start of 2013

China’s factory production ran at its fastest in 11 months in March, according to the official manufacturing purchasing managers index published on Monday, though the rise to 50.9 missed market expectations of a bigger headline jump.

The PMI missed market expectations, based on a Reuters poll of analysts, for a solid uptick to 52.0 from February’s five-month low of 50.1, confounding the view of some analysts that the world’s second-biggest economy might be recovering faster than expected from a slowdown in 2012 that dragged growth to a 13-year low of 7.8 percent.

But a rise in the output index to a 10-month high of 52.7, an 11-month high of 52.3 for overall new orders and new export orders also at an 11-month peak 50.9, offered signs that China’s economic recovery is gaining traction.


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