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Factory activity in China unexpectedly grew for the first time in four months in March, an official survey showed on Sunday, suggesting government stimulus measures may be starting to take hold in the world’s second largest economy.
If sustained, the improvement in business conditions could indicate that manufacturing is on a path to recovery, easing fears that China could slip into a sharper economic downturn.
But analysts remained cautious, citing seasonal distortions due to the long lunar New Year break in February. They said real investment and consumer demand remained soft and pushed up inventories, potentially adding pressure to the sector.

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