Mixed news from Chinese manufacturing. The PMI (purchasing manager index) rose to an eleven-month high in March. Analysts had expected a contraction in manufacturing activity but, according to data released yesterday by the Chinese government, production rose again to 53,1 points from 51 in February. A substantially positive figure, which according to analysts would above all confirm the growth in domestic demand by the Asian giant.
Small businesses suffer. The markets reacted well to the news, despite the simultaneous release of another figure from Beijing, which however concerns small companies. In the face of a general growth in production, small businesses in the dragon suffer. The index that analyzes them (Pmi-Hsbc) tells of a sector in slight but constant contraction. In March, the index dropped to 48,3 points (in this case confirming the estimates), a drop that adds to the one already recorded in February, when production fell to 49,6.
Possible new liquidity within the year. China therefore continues to grow, but at a slower pace. The times of galloping growth seem to be receding, and this scares the markets on the one hand and the Chinese government on the other. The data confirms the perception that Beijing will end the quarter with the worst growth figure in the last three years, an estimate that reopens the possibility that the Chinese central bank will increase liquidity within its system within the year.
