China's manufacturing activity expanded in Mar, defying expectations of a contraction

cnbc.com Production & Sales 2020-03-31 10:33:26

China on March 31 said the official Purchasing Manager's Index for March was 52.0, beating expectations for an economy hit by the coronavirus outbreak.


Analysts polled by Reuters had expected the official PMI to come in at 45 for the month of March.



In February, the official PMI hit a record low of 35.7.


PMI readings above 50 indicate expansion, while those below that level signal contraction.


China's National Bureau of Statistics said in its announcement of the PMI reading that there was continued improvement in the prevention and control of the outbreak in March, with a significant acceleration in the resumption of production.


Sub-indices for production, new orders and employment expanded, the bureau said.


Earlier this year, manufacturing activity slowed dramatically in China as the government instituted large-scale lockdowns and quarantines to contain the spread of the coronavirus disease, formally known as COVID-19.


Qian Wang, Asia Pacific chief economist at Vanguard Investment Strategy, said March's manufacturing PMI reading was "totally expected" as activity improved during the month.


"In February, the Chinese economy was at a full stop. It doesn't take much to rise from such a low base," she told CNBC's "Street Signs."


Although March's PMI reading was in the expansionary zone, it was just a few points above 50 — indicating a modest recovery and gradual resumption of economic activity, she added. There is still significant drag on China's economy.


"That reflects a lot about the deteriorating global outlook as well as subdued domestic demand, especially in the consumer space," said Wang, who expects 1% to 2% GDP growth for China this year with some recovery in the second half due to pent up demand and as the global economy gets back on its feet.


Wang said the Chinese government has likely accepted that growth will take a hit this year from the coronavirus pandemic and is willing to trade off some of that as long as there is social stability.


"As long as we have some ... social stability, that's probably what the Chinese policymakers fear the most rather than just the growth numbers," she said.


On March 30, China's Ministry of Industry and Information Technology said that as of March 28, the resumption of work rate for larger industrial enterprises was 98.6%, and the return of workers stood at 89.9%.


A private PMI survey by Caixin and IHS Markit will be released on April 1.


The Caixin/Markit survey features a bigger mix of small- and medium-sized firms. In comparison, the official PMI survey typically polls a large proportion of big businesses and state-owned companies.


(Writing by Tammy Yang  Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Indonesian thermal coal prices hold steady in thin trading 2020-06-05

Indonesian thermal coal prices were generally stable in the Chinese seaborne import market with no new trades heard in the last trading day of the week. Prevailing offer prices of Indones

2 China coking coal still lacks momentum 2020-06-05

China's coking coal market is still lacking enough impetus to have an across-the-board rise, with price hikes seen in some places while declines in somewhere else. Prices of 0.8%-sulfur p

3 Thermal coal trades set to increase at N China ports, traders 2020-06-05

Some traders expected spot thermal coal transactions to increase next week at northern Chinese ports after staying in the doldrums for one week, owing to the rise of futures market and potential relea

4 Shaanxi and Qinghai sign 3-yr power cooperation agreement 2020-06-05

Shaanxi will increase 10.2 TWh of power supply to Qinghai, an inland province in western China, from 2020 to 2022, according to the "Three-year Framework Agreement on Medium- and Long-term Electricity

5 Five S China provinces' power demand rises on hot temperature, economic recovery 2020-06-05

Power demand of China's five southern provinces of Guangdong, Guangxi, Yunnan, Guizhou and Hainan saw a 9.46% rise year on year in May, said China Southern Power Grid (CSG) that takes charges of grids

6 China Coal Daily Track (Jun 5) 2020-06-05

Thermal coal Production area Coal prices were steady in Yulin of Shaanxi amid good sales, while prices were up 10-20 yuan/t in Shenmu amid improved sales of slack coal. Supply slightly increa

7 May global coking coal market: Aussie price weakens amid Chinese import curbs 2020-06-05

International coking coal prices rebounded slightly in early and mid-May despite persisting impact from COVID-19 pandemic. Yet entering late May, prices of Australian coal declined as some Chinese tra

8 May global thermal coal market: price bottoms out, seaborne coal price-competitive 2020-06-05

International thermal coal market revived slightly in May despite escalating import restriction and tight import quotas in China. As the growth of China's domestic coal prices was larger

9 Yulin plans to rectify 19 private coal mines, impact on market limited 2020-06-05

Yuyang district, Yulin city in northwestern China's Shaanxi province has planned to carry out concentrated rectification on safe production at 19 private coal mines in the district to further strength

10 Russia Jan-May coal exports slide 9.25% YoY 2020-06-05

Russia exported 71.30 million tonnes of coal in total over January-May, down 9.25% from 78.57 million tonnes in the same period last year, according to preliminary statistics from the Energy Ministry

Most Read Articles

1 China's spot thermal coal market quiet amid growing bearishness 2020-06-01

Chinese spot thermal coal market remained quiet at the beginning of this week, amid rising bearishness among participants that prices could fall back in the short run. The soured outlook

2 Russia's rail link to port of Murmansk severed by bridge collapse 2020-06-03

Russian Railways has halted passenger and cargo rail transport between the northern port of Murmansk and the rest of Russia after the collapse of the only railway bridge linking the two, the national

3 China manufacturing rebounds as economy shakes off coronavirus, Caixin PMI shows 2020-06-01

Manufacturing activity in China rebounded in May driven by a jump in output as companies resumed production after the coronavirus lockdown in the first quarter, indicating the nation's recovery from t

4 China's seaborne thermal coal market quiet amid low demand; downturn looming 2020-06-03

Chinese seaborne import thermal coal market remained flat similar to the past few days, as no power plants renewed tenders and traders stood on the sidelines. The best offer for a July-de

5 Chinese seaborne thermal coal market muted; trades thin 2020-06-02

China seaborne import thermal coal market was quiet with no new trades heard. Offer prices of Indonesian cargoes edged lower whereas Australian coal prices were largely unchanged. Indones

6 Indonesian thermal coal prices edge lower amid poor demand 2020-06-01

Chinese seaborne import thermal coal market opened the week with lower offer prices of Indonesian cargoes, as Chinese utilities and traders held back on buying after Chinese domestic prices began soft

7 Indonesian thermal coal prices keep falling on concerns of quota shortage 2020-06-04

Lower offers of Indonesian low-colorific value thermal coal were seen in the Chinese seaborne import market, as buying interest was curbed by concerns of quota shortage. The most-active 3

8 China to approve 30 UHV power transmission lines in next 5 yrs 2020-06-03

China will have more than 30 new ultra high-voltage (UHV) power transmission lines approved by 2025, driving 587 billion yuan of investment into the industry, according to a report issued on June 2.

9 CHN Energy Jun term contract thermal coal prices rebound sharply 2020-06-04

China's top coal mining group China Energy Investment Corporation, or CHN Energy, adjusted up its monthly contract thermal coal prices for June shipments sharply, sources disclosed. CHN E

10 China coking coal market buoyant, sales improve 2020-06-03

China's coking coal market showed signs of recovering after three months of decline, chiefly underpinned by brisk sales from mines. With a 150 yuan/t coke price hike last month, some coke

Scan to download sxcoal.com mobile APP

X