China’s industrial activity rose at the fastest rate in more than a decade in February, according to data released by the government, defying expectations as production soared following the removal of COVID-19 limitations late last year.
According to data from the National Bureau of Statistics, the official manufacturing purchasing managers’ index (PMI) rose to 52.6 in February from 50.1 in January, beyond the 50-point threshold that distinguishes expansion from contraction on a monthly basis. The PMI significantly exceeded expert predictions of 50.5, and was the highest level since April 2012.
In 2022, the second-largest economy in the world saw one of its worst years in nearly half a century as a result of tight COVID lockdowns and widespread diseases. In December, restrictions were abruptly eased as the extremely contagious Omicron virus spread across the nation.
Although the manufacturing sector has begun to exhibit more indications of recovery, it remained under pressure in January as factory-gate prices declined due to continued cautious domestic consumption and uncertain international demand.
China’s central bank predicted on Friday that the domestic economy would return in 2023, despite the “severe and complex” external environment.