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Hard landing off?From FT:
China’s purchasing managers’ index, an important gauge of factory activity, defied most analysts’ forecasts for a slowdown and rose to 53.1 in March from 51.0 in February. It was the strongest reading in a year and signalled a modest acceleration of industrial output.
This is the official number.
Then there’s the unofficial HSBC China PMI, which actually showed renewed deceleration, dropping from 49.6 to 48.3.
This is the second worse number in 3 years.
So it’s a split decision, which is better than if both numbers were confirming the downturn.
You can see how nicely things have been pickup here in this chart.
From the report:
China’s manufacturing PMI improved from 51.0% in February to 53.1%
in March, the highest in twelve months. The index has stayed above the
critical level of 50% for four consecutive months, indicating that the
underlying momentum of the manufacturing sector in China has
continued to improve.
10 of the 11 sub-indices were higher than their respective levels in the
previous month. The new orders index rose strongly by 4.1 ppt. while the
new export orders index gained 0.8 ppt. in March. The index readings
indicated significant improvement in domestic demand. On the other
hand, the input prices index went up from 54.0% in February to 55.9% in
March, showing that upstream price pressures have increased.