China's factory sector grew at a faster pace in March, led by solid improvement in new orders and production, according two separate surveys released on Monday.
The China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics said that the official purchasing managers' index, that measures the performance of the manufacturing sector, rose to 50.9 in March from 50.1 in February.
A PMI reading above 50 indicates expansion of the sector. The index has now remained above 50 for six consecutive months. However, the reading was slightly below economists' forecast of 51.2.
The CFLP survey revealed that new orders received by Chinese manufacturing firms rebounded in March with the relevant index rising to 52.3 from 50.1 in February. The production index rose to 52.7 from 51.2 in the previous month.
Meanwhile, detailed results of a survey by Markit Economics showed that the HSBC/Markit PMI for the Chinese factory sector rose to 51.6 in March from 50.4 in February. The index was marginally lower than 51.7 reported in the preliminary survey results released on March 21.
Markit said that operating conditions in the Chinese manufacturing sector have now improved for five consecutive months.
Further, the survey found that production levels at Chinese manufacturing firms increased for the fifth month in a row in March. The rate of expansion accelerated from February and was the second-fastest in two years.
Total new orders rose solidly in March and for the sixth month in a row, the Markit survey showed.
Average input costs faced by manufacturers decreased, following a five-month period of inflation. At the same time, output charges set by manufacturers declined in March, and for the first time since last November.
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