Chinese economic growth continues in March

Economic growth in China continued in March, driven mainly by manufacturing and amid "notable" increases in prices, according to the latest reading for World Economics's Sales Managers' Index.

The SMI rose to an eight-month high of 52.6.

However, activity in the larger services sector continued to be low, but "consistent".

"A key takeaway form the March SMI is the notable increase in prices charges for goods and services. Panel members in the real estate sector especially have noted that house prices, apartments in particular have seen intense rises recently in 2nd and 3rd tier cities," World Economics said.

Meanwhile, the overall Business Confidence Index jumped to 52.4 - its best reading for 31 months - with the biggest increase in confidence being reported by large or state-owned enterprises - who were at their most optimistic since September 2015.

"The service sector looks set to continue to be a low and relatively stable underpinning of the economy while the manufacturing sector offers a boost to China’s overall economic situation."