China's factory activity expands for first time in six months

March data offers relief to policymakers even as property slump hampers growth

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China's manufacturing activity expanded for the first time in six months in March, an official factory survey showed on March 31, offering relief to policymakers even as a crisis in the property sector remains a drag on the economy and confidence.

The official purchasing managers' index (PMI) rose to 50.8 in March from 49.1 in February, above the 50 mark separating growth from contraction and topping a median forecast of 49.9 in a Reuters poll.

Though the pace of growth was modest, it was also the highest PMI reading since March 2023, when momentum from the lifting of tough Covid-19 restrictions began to stall.

"From the indicators, domestic supply and demand has improved, while home owner and business confidence is recovering, while willingness to consume and invest are increasing," said analyst Zhou Maohua from China Everbright Bank.