A Chinese manufacturing gauge rebounded in February, suggesting stimulus efforts and the U.S. recovery are supporting factories in the world’s second-largest economy.
The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.1, exceeding the median estimate of 49.5 in a Bloomberg survey and up from January’s 49.7. Numbers above 50 indicate expansion.
The first reading of momentum in February may alleviate concerns of a deeper downturn after the economy expanded at the slowest pace in 24 years in 2014. China’s consumer-price index rose the least in more than five years in January and factory-gate deflation deepened, giving the central bank more room to follow up on November’s interest-rate cut and this month’s reduction of banks’ reserve requirements.