China's PMI index for the manufacturing sector rose to 50.4 in March, the highest level in the past 12 months, and an increase of 1.4 percentage points compared to the previous month, marking a return to a growth phase, as shown by official data on Tuesday. This improvement occurred after companies resumed work and production after the holidays at the beginning of the year, which, according to Huo Lihui, the chief statistician of the Center for Service Sector Research at the National Bureau of Statistics, revitalized overall market activity.
In key sectors, including agriculture and food processing, as well as the smelting and rolling of non-ferrous metals, the production and new orders indices exceeded 55.0, indicating strong production and demand momentum. High-tech manufacturing maintained strong growth, with its PMI index reaching 52.1, meaning it has been above the expansion-recession threshold for 14 consecutive months, reflecting a stable upward trend.
The tertiary sector also saw improvements, with the business activity index rising slightly by 0.6 percentage points to 50.1. The services sector index increased by 0.5 points to 50.2. Sectors such as railway transportation, telecommunications, radio and television broadcasting, financial services, and insurance continued to experience strong growth above 55.0, with a significant increase in business volume. As noted by Huo Lihui, the construction activity index rose by 1.1 percentage points to 49.3, thanks to the gradual recovery of construction projects after the national holidays.
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