China PMI up in March but weakness persists

Beijing

CHINA'S manufacturing activity surprised on the upside in March but continues to show inherent weaknesses, suggesting more central bank intervention to support the slowing economy could be in the works.

The official Purchasing Managers' Index (PMI) released by the government rose to 50.1 in March, up from 49.9. Despite being the first expansion since December, analysts say fundamentals remain on the downside as the economy faces increasing challenges from an anaemic property market, growing corporate and bank debt as well as industry plagued by overcapacity.