BEIJING: China's factory activity grew at the fastest pace in a year in March, underpinned by improved demand, an official survey showed on Tuesday, a welcome relief for an economy grappling with global supply chain strains and energy market volatility.
The stronger reading eases pressure on policymakers, though its durability is in doubt as surging energy prices driven by the Middle East war, and heightened growth risks, pose fresh headwinds for manufacturers reliant on exports and operating on thin margins. "The outlook for Q2 is unclear at this stage, given the negative impact from high energy prices," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
