The official manufacturing purchasing managers index rose to 50.4 from 49 in February, the National Bureau of Statistics reported, beating economists’ expectations and notching the strongest reading in a year. PMI is measured on a scale of 0 to 100 and a reading above 50 indicates expansion.
While the latest official data covered a period after the Iran war began on Feb. 28, analysts say the impacts of surging energy costs have not yet been fully seen. “So far supply disruptions have not occurred in a material way,” said Jacqueline Rong, Chief China Economist, BNP Paribas, a French bank.