After some months of contraction, China’s manufacturing sector was unexpectedly growing again in March, according to the Caixin Manufacturing Purchasing Managers Index
released Monday. The positive change comes after the government announced it was starting an initiative attempting to boost the economy by increasing spending, cutting taxes and opening up more opportunity to foreign firms.
Whenever the index reads above 50, it indicated that the sector is growing. Readings below 50 signal a contraction. The official government PMI, which was released Sunday, also rose above the important 50 points mark again. The government PMI is only looking at larger manufacturers, while the Caixin Index considers small and medium-size enterprises.
China reported the slowest economic growth in 28 years in 2018, with growth expected to slow further despite the positive news from the manufacturing sector.