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China factory growth surprises on upside in February

Published 02/28/2017, 09:15 PM
Updated 02/28/2017, 09:16 PM
© Reuters.  China PMIs gain

Investing.com - China's factory output expanded for the eighth straight month in February as export orders picked up, according to key surveys released on Wednesday, signaling that the economy was highly resilient.

The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) rose to 51.7 on a seasonally adjusted basis, up from 51.0 in January and beating analysts' forecasts of 50.8.

The Caixin PMI sub-index for new export orders rose to 53.8, compared to 52.9 in January and the highest rate of growth since September 2014.

"The Chinese manufacturing economy continued to recover in February. But it is premature to jump to the conclusion that the recovery is entrenched," said Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, in a note with the PMI data.

"The second quarter is likely a key period to look at for future trends."

Earlier, China's official manufacturing PMI rose to 51.6 in February, beating a 51.1 level expected, and 51.3 in January , Reuters reported on Wednesday, while China's services sector slowed slightly in the month.

The official non-manufacturing PMI, or services, stood at 54.2 in February, compared with the previous month's reading of 54.6, Reuters said, with both above the 50-point mark that separates growth from contraction on a monthly basis.

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