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China’s factory sector rebounded to expand in March following five straight months of contraction, another sign that the country’s stimulus efforts are taking effect.
The official purchasing managers’ index rose to 50.8 in March from 49.1 in February, China’s National Bureau of Statistics said on Sunday. The reading exceeded the median forecast of 49.9 among economists surveyed by news organization Reuters. A reading above 50 indicates expansion.
The benchmark of factory activity also was the highest since March of last year.
The production subindex rebounded to expansion territory at 52.2 in March, up from 49.8 in February.
The gauge for employment rose to 48.1 from February’s 47.5, a sign that factories are less likely to cut workers.
The subindex for total new orders rose to 53 in March 49 in February.
China’s benchmark for new export orders improved to 51.3 from February’s 46.3. March’s reading marked the first time it exceeded the 50 threshold in a year.
The country’s nonmanufacturing PMI that includes services and building activity rose to 53 in March from 51.4 in February, according to a separate report on Sunday.
The subindex for services activity advanced to 52.4 in March from February’s 51. The construction subindex rose to 56.2 from 53.5 in February.