Builders work on a tower crane in Pazhou Artificial Intelligence and Digital Economy Pilot Zone in Guangzhou, South China's Guangdong Province.Photo: IC

 
China's bulk commodity market continued to grow in March, with the index reaching the highest point in nearly 32 months, industry data showed on Wednesday, pointing to the steady economic recovery from the impact of COVID-19 outbreaks.

The China Bulk Merchandise Index (CBMI), a gauge of domestic bulk commodity market growth, stood at 103.4 percent in March, up 0.6 percentage points compared with February and reaching a 32-month high, according to the China Federation of Logistics and Purchasing (CFLP).

This also marked the highest point since August of 2020, indicating that the commodity industry is expected to continue to improve as the pandemic impact ebbs and the traditional peak season of consumption approaches.

The sub-indices for bulk commodity supply and sales expanded in March compared to the previous month, while the sub-index for inventory dipped to 99.6 percent for two consecutive months, or the lowest point in nearly five months. This suggests that the inventory of commodities that had been in backlog in the previous period began to decrease, and the pressure on domestic commodity inventory eased, the CFLP said. 

The foundation of overall economic growth is being further strengthened, especially the foundation of demand and domestic demand, and the resilience of the Chinese economy is also growing further, said Cai Jin, deputy head of CFLP, according to CCTV.com on Wednesday. 

The CFLP  predicts that the bulk commodity market will continue to maintain a steady and positive development trend in April as manufacturing and infrastructure will continue to drive demand growth, especially during the annual construction season.

After a difficult year in 2022, China's real estate market has seen a strong recovery, and the economy has expanded significantly in early 2023, with a series of policies to support the industry taking effect.

In February, 55 out of 70 large and medium-sized cities saw month-on-month increases in new home prices, up from 36 in January. Meanwhile, 40 cities witnessed higher resale home prices, up from 13 in the previous month, according to the National Bureau of Statistics. 

Chinese auto enterprises are rolling out stimulus measures to spur consumption. Data from the China Association of Automobile Manufacturers showed that the country's auto sales reached 26.86 million units last year, up 2.1 percent year on year. In February, some 304,000 domestically produced high-end passenger cars were sold in China, up 7.1 percent month on month.

Market watchers said that the country's domestic demand has not yet been fully released. As there will have more stimulus policies of the government and auto manufacturers, Chinese auto market will be further stimulated.