China will release official manufacturing PMI data for March on 1 April. According to Standard Chartered the index is likely to have inched up marginally to 50.0 from 49.9 in February as factories reopened and businesses re-started operations after the Lunar New Year holiday.
However, production and sales likely remained weak amid China's current slowdown, especially compared with previous years. Inventory destocking in the manufacturing sector to have continued, and still-high interest rates to have constrained manufacturers' investment.
"We therefore expect the PBOC to loosen policy further in the near term to boost growth and confidence", says Standard Chartered.
