China’s manufacturing activity rebounded in March after two months of decline, recording its fastest growth in a year, according to official data released today.
Data from the National Bureau of Statistics of China showed that the Purchasing Managers’ Index (PMI), a key indicator of the sector, rose to 50.4 points in March—up 1.4 points from 49 in February.
In this indicator, values above 50 signal expansion compared to the previous month, while readings below that threshold indicate contraction. Analysts had expected a return to growth territory, though more modest, at around 50.1 points.
Among the five sub-indices that make up the manufacturing PMI, production and new orders—key measures of demand—stood out. Meanwhile, inventories of raw materials, employment, and supplier delivery times remained in contraction territory, although they showed improvement compared to February.
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According to statistician Huo Lihui, part of the recovery is due to seasonal factors. The data is compared with February, when the Chinese New Year is celebrated—a period that عادة reduces activity as migrant workers return to their hometowns.
Sectors such as agricultural and food processing, as well as non-ferrous metal smelting and rolling, were key drivers of the recovery. Others, including textiles and plastic products, remained below the expansion threshold.
The bureau also released data for the non-manufacturing PMI, which covers services and construction. It rose from 49.5 points in February to 50.1 in March, returning to expansion territory for the first time this year.
Analysts had expected an improvement, but not enough to reach growth, forecasting a reading of 49.9 points.
The recovery was mainly driven by the services sector, which returned to growth (50.2 points, up from 49.7 in February) after four consecutive months of decline. Construction, however, remained in contraction for the third straight month, though at a slower pace, registering 49.3 points after hitting a low of 48.2 in February.
The composite PMI, which combines manufacturing and non-manufacturing sectors, increased from 49.5 to 50.5 points in March, reflecting a broader recovery in economic activity.
