China's economy: The manufacturing sector is returning to growth in March

  A woman works on socks to be exported to the United States at a factory in Huaibei in China's eastern Anhui province 7 August 2018 Image copyright
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China's manufacturing sector so surprisingly back to growth in March after Government's efforts to increase the economy.

The Caixin / Markit survey, released on Monday, rose to 50.8 in March from 49.9 in February. A reading over 50 indicates expansion.

Official production data published a day earlier also pointed to a jump in activity.

Beijing has taken steps to support the economy to fight growth growth.

The Caixin / Markit Manufacturing Purchasing Managers Index (PMI) rose to an eight-month high of 50.8 in March, beating the 49.9 forecast in a Reuters economist survey.

Result echo China's official PMI data released on Sunday. It turned out that production activity rose to 50.5 in March, from 49.2 in February.

The official PMI data looks at activity among major manufacturers, while the private survey from Caixin and Markit focuses on small and medium-sized businesses in the sector.

The stronger than expected data sent Asia stocks higher. Hong Kong's Hang Seng index rose 1[ads1].7%, while the Shanghai Composite jumped 2.3%.

Chinese stimulus

The great factory data showed that efforts to increase the world's second largest economy are beginning to bear fruit.

China has reported its weakest economic expansion for 28 years in 2018, and growth is expected to slow further.

Beijing has revealed a number of measures – including cutting fees – to support the economy.

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