China factory index hits five-year high

China's manufacturing sector continues to expand, resulting in the highest Purchasing Managers' Index score in nearly five years.

China's factory activity has ticked up again to its highest level in five years in a fresh sign the world's No.2 economy is picking up steam.

The Purchasing Managers Index, released on Friday, climbed for a second straight month in March to 51.8, its strongest level since April 2012, from 51.6 in the previous month.

A figure above 50 indicates positive expansion, while anything below points to contraction in the manufacturing sector.

China's non-manufacturing PMI score edged up to 55.1 points in March, marking its highest level since May 2014.

"The manufacturing sector continued to maintain a steady trend," said Zhao Qinghe of the National Bureau of Statistics.

Production and new orders were key drivers, Zhao said, adding high-tech manufacturing grew rapidly while conditions in traditional industrial production improved.

Factories stopped shedding staff for the first time in five years, as the report's employment sub-index rose to 50, the first time it has not been in contractionary territory since May 2012.

The latest data add to recent evidence China's economy is picking up.

Earlier in March, a report found imports and exports expanded in the first two months of the year after weakening near the end of 2016.


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Source: AAP



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