China official results show manufacturing barely growing

China’s
official PMI rose slightly for March, but a survey weighted towards smaller,
privately-owned firms shows manufacturing in contraction.

The BBC reports that the result in the official PMI, which favours larger,
government-run firms, was up from February’s 50.2 to 50.3. February’s result was
an eight-month low.

Any
score above 50 indicates expansion.

However,
the HSBC/Markit survey registered a result of 48.0, continuing a run of
negative results since January.

“We’re still in a subdued part of the cycle,”
Louis Kuijs, the Royal Bank of Scotland chief China economist said, according to Reuters.

“I still don’t think the downward pressures
are tremendous, but they are large enough for the government to really start to
talk about the need to support growth.”

The ABC reported yesterday that the Australian
dollar edged up after the release of the survey results to 92.83 US cents.