Why a recovery story in manufacturing sector is still uncertain

March PMI went up to 50.6.

According to Knight Frank, manufacturing performance remained lack-lustre as January and February manufacturing output contracted 0.4 per cent and 16.6 per cent y-o-y respectively.

Decline in output, especially in February, is partly due to slower activities in the Lunar New Year period where many factories were closed.

According to the latest monthly manufacturing performance, the two main manufacturing sectors, electronics and biomedical manufacturing, fell by 21.1 per cent and 18.0 per cent y-o-y respectively.

Here's more from Knight Frank:

However, the positive growth in January’s and March’s Purchasing Managers’ Index (PMI) may reflect silver linings to the tepid conditions in the manufacturing industry.

PMI in January 2013 rose to 50.2 after contracting for six consecutive months in 2H 2012 and PMI in March 2013 rose to 50.6 from the slight fall of 49.4 in February.

Although this leading indicator may signify expansion in new exports orders in the next fewmonths, recovery in the manufacturing sector still remained relatively
uncertain.

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