China’s Manufacturing and Non-Manufacturing PMIs Beat Estimates despite Omicron-led Disruptions

Source: National Bureau of Statistics of China

China’s economy gathered pace in February, signaling the government’s pro-growth policies have begun to take effect, even though small companies are still struggling. CSI 300 Index up +0.83%, CNY USD down -0.06%

• The official manufacturing purchasing manager’s index jumped to 50.2, topping the average estimate of 49.8 by economists in a Bloomberg survey.
• The non-manufacturing gauge, which tracks activity in both the construction and services sectors, rose to 51.6, above the consensus forecast.
• Manufacturing activity at the start of every year is usually distributed by the Lunar New Year Holidays, which dropped largely in February this year. 
• Zhao Qinghe, an NBS senior statistician, stated that production in the manufacturing industry bounced back to normal after the Spring Festival.
• Qinghe further stated that government policies adopted to boost steady economic and industrial growth also bolstered companies’ business confidence further.
• The rapid growth in China’s activity comes with a broad improvement in PMIs in Southeast Asia last month as countries overcome Omicron-led virus outbreaks