China's Factory Activity Growth Reaches a Three-month High in February

China's factory activity increased at its fastest rate in three months, to 50.8 in February, according to a private-sector survey released on Monday, as millions of migrant workers returned to work after an extended Lunar New Year holiday.

The seasonally adjusted Caixin/S&P Global Manufacturing Purchasing Managers' Index surpassed Reuters' poll forecast of 50.3, rising from 50.1 in January and 50.5 in December.

Since last October, the private-sector manufacturing PMI has remained above the 50-point threshold that separates expansion from contraction.

Following the release of the official manufacturing PMI on Saturday, which revealed that factory activity in China grew at the fastest rate since November, the private survey reading was made public on Monday.

The National Bureau of Statistics reports that the official PMI rose from 49.1 in January to 50.2 in February. Additionally, the non-manufacturing PMI—which accounts for construction and services—rose from 50.2 in January to 50.4.

The data was released as analysts cautioned that new US tariffs might strain China's manufacturing sector, which contributed 25% of its GDP last year, and jeopardize exports as a major growth engine this year.

According to the Monday survey, new export orders increased at the fastest rate since April, as "demand strengthened from foreign clients.

Last week, US President Donald Trump announced that he would impose an additional 10% tariff on Chinese goods, on top of the 10% he imposed on China on February 4. Trump had threatened China with 60% tariffs during his campaign