China’s economy gained momentum in March. Both service providers and industry were buoyant, as evidenced by the official PMIs published today. The barometer for the industry rose unexpectedly strong and was again above the growth threshold at 50.5 points for the first time in four months.
In February, it had marked 49.2 points, the lowest value in three years. Among service providers, the index rose to 54.8 points from 54.3 in February, the statistics office said. The rapidly growing service sector now accounts for more than half of China’s economic output.
Trade dispute as a drag
The Chinese economy has recently lost momentum, especially the trade dispute with the US is weighing on business. Next week, Chinese Vice President Liu He will visit US for talks. According to insiders, there had been progress recently in the negotiations.
In addition, the economy is burdened by many years of efforts to get the debt under control. The government in Beijing has therefore announced additional spending on roads, railways and ports to get the economy off the ground.
