According to a Caixin sponsored survey of April 1, China’s manufacturing activity recovered in March as workers returned to businesses, despite the expanding coronavirus outbreak overseas denting foreign demand.  The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rebounded to 50.1 in March from a record low of 40.3 the previous month. Readings above 50 indicate expansion. Although the PMI’s output subindex recorded a big rebound in March, the subindex for total new orders remained in contractionary territory, following the steepest drop on record in February. The gauge for new export orders remained below pre-pandemic levels.

 

Separately,  the Trivium National Large Enterprise Activity Index indicates that China’s large enterprises are operating at 80.5% of typical output, up from 80.2% on March 27 and the Trivium National SME Activity Index indicated that China’s small businesses are operating at 75.9% of typical output, up from 71.0% on March 27. Additionally, 25 out of 31 provinces have seen full resumption of their large companies – at 99% or higher. These provinces account for 89.2% of GDP. Those lagging behind are: Hubei, Beijing, Inner Mongolia, Ningxia, Qinghai and Tibet.