In particular, the manufacturing sector expanded after a brief contract in January, the first contraction after Q3 2024.
Manufacturing recovery and industry trends
CN Wire highlighted major trends in February PMI data:
- The manufacturing sector saw the expansion of demand and production after a January contraction.
- Industries reporting PMI above 54.0 included non-Father metal smelting and rolling processing, general equipment and electrical machinery and equipment.
- In contrast, there was PMI below the 50 neutral point of textiles and apparel, and petroleum, coal, and other fuel processing.
- Price indices continued to increase, which could reduce deflation concerns.
Assessing widespread trends, CN Wire mentioned:
“In February, the overall PMI output index was 51.1%, which was 1.0%marks from the previous month, which was left in the expansion sector, which indicates quick recovery and development of the development of enterprise production and post -commercial activities in China. The manufacturing production index and non-construction business activity index, which forms the overall PMI output index, were 52.5% and 50.4% respectively. ,
Demand and production key for domestic development
The February figures may be important for China’s economic approach. Improvement in demand and productivity can lead to employment generation and consumer spirit. Growing consumer confidence can make the efforts of Beijing excitement more effective in supporting domestic income and driving consumption.
However, in the production of manufacturing sector, the rebound of China’s post-New Year may reflect front-loading on the US tariff on Chinese goods. This week, President Trump announced that 10% tariffs on imports from China would be effective from Tuesday, March 4. Trump has also planned to install sweeping tariffs on auto, pharmaceuticals and semiconductor chips.
