(Yicai) March 3 -- Activity in China’s manufacturing sector expanded last month at the fastest clip since November, with production and new orders increasing by the most in three months as businesses got back to work after the Chinese New Year holiday, according to the findings of a widely watched private survey.

The Caixin manufacturing purchasing managers’ index came in at 50.8 for February, up from 50.1 in January, data released by financial media group Caixin showed today. The figure was 50.5 in December and 51.5 in November, a five-month high.

The official manufacturing PMI published by the National Bureau of Statistics on March 1 jumped to 50.2 last month, up from 49.1 the month before.

“Both supply and demand grew, with the gauges for output and total new orders remaining in expansionary territory for the 16th and fifth consecutive months, respectively, both reaching their highest levels in three months,” said Wang Zhe, senior economist at Caixin Insight Group. 

“New export orders increased, ending a two-month decline, with the corresponding gauge rising to its highest level since April last year,” Wang added.

But the jobs market remained under pressure, according to Wang. “While some companies increased hiring, cost-cutting and efficiency remained the priority for many, particularly among consumer goods and intermediate goods producers,” he said. “In February, employment fell for the sixth straight month, though the pace of decline slowed.”

Confidence rose for the second straight month in expectation of stronger demand, with planned new product launches likely to help boost production and sales this year. “The gauge for future output expectations rose close to its historical average, matching a level last seen in November,” Wang noted.

March is a critical policy window, Wang pointed out. The so-called Two Sessions, the annual agenda-setting meetings of China's top legislature and top political advisory body, will kick off in Beijing on March 5 and tomorrow, respectively. 

“Supportive measures should address market expectations and societal concerns, focusing on key economic bottlenecks,” Wang said. “Meanwhile, policies should prioritize demand-side measures, strengthen countercyclical adjustments, and promote higher household income and consumer confidence.”

Editor: Futura Costaglione