Last year’s Manufacturing Index ended in decline, which rolled into January. The last two months have reversed the decline to a point where March turns in the best number since July of last year. Every time a sector of the Chinese economy is counted out, it seems to recover in relatively short order. This comeback was fueled by growth in new orders – mostly exports. They were strong enough to overcome slight declines in purchasing activity, finished goods inventory and slight increases in input costs.
According to Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin manufacturer’s are seeing a positive future, “Overall, with a more relaxed financing environment, government efforts to bail out the private sector and positive progress in Sino-U.S. trade talks, the situation across the manufacturing sector recovered in March.” Source: China Caixin,CNBC