China's Factory Gauge Strengthens as Producer Prices Rebound

China’s official factory gauge firmed in February as producer prices rebounded, giving top officials gathering in Beijing a solid economic backdrop as they seek to rein in financial risk.

The National People’s Congress starts this weekend and will likely signal increasing tolerance for slower yet sturdier economic expansion as leaders unveil their growth target for this year. Policy makers have pledged prudent monetary policy as they seek to manage the risk from swelling debt that followed earlier rounds of stimulus. They’re also seeking to cut jobs in overcapacity industries to insure against a renewal of deflationary pressures.