As the spread of the Coronavirus ceases in most parts of China, government data released on Tuesday shows that China’s manufacturing sector recovered better than expected in March after a sharp drop in February. The PMI increased to 52.0 during the specified period according to the National Bureau of Statistics (NBS). This comes after hitting a historic low in February at 35.7.
Statistics indicate that more than half of the companies surveyed resumed work and production, but this does not mean that the economic process in China has returned to normal.
The February PMI was the first in a series of record low economic indicators for the first two months of the year, including a 17% YOY drop in exports.
Although annual GDP will likely drop for the first time since 1976, decision-makers have not changed their 5.6% minimum economic growth target for 2020.
While Chinese leaders will welcome the PMI numbers which were better than expected, they must balance the return to normal economic activity with the possibility of new outbreaks as workers return to their factories and offices.
The NBS pointed out that the continued spread of the pandemic across the world has a strong impact on global economic growth and trade.