MNI DATA IMPACT: China March Mfg PMI Jumps to Six-Month High

     BEIJING (MNI) - Manufacturing activities in China bounced back in expansion

and hit a six-month high as the government attributed the apparent recovery to

the tax-cutting stimulus. MNI highlights the following key takeaways from March

PMI data release by the National Bureau of Statistics in Beijing on Sunday:

     --PMI quickened to 50.5 after February's 3-year low of 49.2, beating

MNI-survey forecast of 49.8. The index surged to the best in six months,

shrugging off three months of contraction at below 50.

     --Manufacturing activities accelerated due to improved domestic demand as

tax and fee cuts gradually took effect, the NBS said in a statement. Production

index gaining 3.2 percentage points to 52.7 from February, while new orders

climbed 1 pp to 51.6.  

     --New export orders remained below the 50 breakeven, as the NBS cited a

slowing global growth weakening external demand. The sub-index still improved to

47.1 from 45.2 in February. 

     --Raw materials purchase and ex-factory prices both rebounded due to rising

commodity prices. The two indexes rose by 1.6 and 2.9 pp from February to 53.5

and 51.4 respectively.

     --Non-manufacturing PMI rose to 54.8 from 54.3 in February, suggesting

improved service-industry activities. Business activities in telecommunications,

banking and constructions all registered at above-57, suggesting fast growth,

while that of lodging and real estate were still sluggish at near breakeven, the

NBS said.   

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]