On Tuesday China announced that its official Purchasing Manager's Index for March was 52.0, which exceeded expectations for an economy affected by the outbreak of coronavirus. The growth is significant after the disastrous data from February (February PMI of China - 35.7).
PMI in China in March (data from the National Bureau of Statistics):
- Industry - 52.0 vs 35.7 in February
- Services sector - 52.3 vs 29.6
- Composite (industry + services) - 53.0 vs 28.9
This only means that most companies, indeed, resumed their work. But it is obvious that Chinese business is now facing a serious collapse in external demand due to quarantines in the United States and Europe. Therefore, a return to the normal level of economic activity seems to be very smooth.