China Manufacturing Riding a 12-month High

After 11 months of ebb and flow, the China’s manufacturing sector is now at an all-time high. The PMI or Purchasing Manager’s Index is the industry standard for measuring the performance of any given sector on a global scale. With a score of 50.9, up over 0.8 points since earlier this year, growth is undeniable.

China’s growth has been nothing short of staggering in recent years and much of the more recent growth has been attributed to a heightening domestic demand in addition to international demand.

What makes the current PMI score for China’s manufacturing sector more impressive, is the fact that these readings are most reliable when taken at this point in the year. Coming off the Lunar New Year Holiday in February, data can often be a bit skewed and will not provide an a fully accurate basis for the PMI measures. That these measurements are holding steady and continuing to show an increase during the month of March indicates that such growth is real.

Much of this growth has been attributed to China’s machinery and electronics manufacturing. With domestic conditions improving, the demand for consumer electronics has risen accordingly. This is likely the beginning of a great positive economic cycle for China, as the demand for devices such as smartphones, tablets and PC’s is something that will continue to grow.

Another survey of China’s manufacturing sector indicated a PMI reading of 51.6 for the month of March, which is up over 1 full point from the previous month. This is significant and signals that economic conditions in China are improving despite any analyst projections to the contrary. The proof is in the pudding, and when it comes to China’s manufacturing center, this should be all the proof analysts and investors need.

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