At 51.6 in February, the headline seasonally adjusted PMI increased from 49.2 in January. Suppliers' delivery times have improved as well at quickest rate for eight years.
The higher headline index reading was supported by a renewed increase in production volumes in February. This marked the first upturn in output since last August, with the rate of expansion the steepest since June 2022.
Fresh increases in employment and purchasing activity were also seen, while pressure on supply chains eased and lead times improved to the greatest extent in eight years.
Firms frequently mentioned that the recent easing of COVID-19 containment measures and recovery of operations and client demand had underpinned the increase in production, an official release said.
Similarly, total new business expanded for the first time in seven months, and at the quickest rate since May 2021.
Higher sales were linked to the recent roll back of pandemic restrictions and subsequent improvement in demand conditions. Companies also noted an improvement in foreign demand for Chinese manufactured goods, with new export orders rising for the first time since July 2022.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
