Official data: China’s factory activity expanded at the fastest pace in a year
The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.5 in March from 50.2 in February, according to the National Bureau of Statistics.
China’s manufacturing sector gained momentum in March, expanding at its fastest pace in a year as a surge in new orders boosted production. The latest data offers a glimmer of relief for the world’s second-largest economy amid escalating trade tensions with the United States.
The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.5 in March from 50.2 in February, according to the National Bureau of Statistics.
The non-manufacturing PMI, which tracks activity in services and construction, also increased to 50.8 from 50.4, exceeding forecasts of 50.6, reflecting renewed strength in infrastructure investment.
A key driver of the improvement was the new orders sub-index, which climbed to 51.8—its highest level in a year—suggesting a recovery in domestic demand. While new export orders remained in contraction territory, the pace of decline slowed.
In response to mounting economic pressures, Chinese policymakers have pledged to step up monetary and fiscal support to achieve the government’s 2025 growth target of around 5%. Recent measures include expanding a consumer goods trade-in scheme to boost domestic consumption and accelerating government debt issuance to stabilise the property market and counter deflationary risks.