Manufacturing PMI Reaches 50.8% in March, Showing Signs of Economic Recovery
Securities Times reporter Jiang Dan
Data released by the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing on March 31 showed that in March, the manufacturing purchasing managers index (PMI) was 50.8%, an increase of 1.7 percentage points from the previous month and above the critical point. This marks the first time in six months that the manufacturing PMI has surpassed the critical point, indicating a rebound in the manufacturing sector.
Zhao Qinghe, a senior statistician at the Service Industry Survey Center of the National Bureau of Statistics, attributed the increase in PMI to companies accelerating their resumption of work and production after the Spring Festival, leading to an uptick in market activity. Among the 21 industries surveyed, 15 were in the expansion zone, signaling a significant expansion in the manufacturing boom. Zhang Liqun, a special analyst at the China Logistics Information Center, noted that the sharp rebound in the index indicates a clear economic recovery.
Analyzing the sub-indices, the production index rose to 52.2%, new orders index to 53.0%, raw material inventory index to 48.1%, employee index to 48.1%, and supplier delivery time index to 50.6%. Other sub-indices, such as new export orders and expectations for production and business activities, also showed improvement.
Wen Tao, an analyst at the China Logistics Information Center, emphasized that the changes in sub-indices demonstrate growing market supply and demand, as well as a synchronized rebound in major industries. The Soochow Securities Research Report highlighted the role of new orders in leading the PMI rebound, driven by both domestic and external demand.
Market institutions unanimously acknowledged the further alignment of supply and demand in March, with Gao Ming from Galaxy Securities noting the potential positive impact on ex-factory prices and corporate profit expectations. Wen Tao projected a stable and growing macroeconomy, fueled by intensified policies supporting economic development.
In addition to the manufacturing PMI, the non-manufacturing business activity index and the comprehensive PMI output index also increased in March. Cai Jin, vice president of the China Federation of Logistics and Purchasing, reported that non-manufacturing business activities have stabilized and improved, particularly in industries such as construction, producer services, new energy, and social financing.
Looking ahead, analysts anticipate continued economic growth supported by macroeconomic policies and accelerated economic activities. The positive trends in both manufacturing and non-manufacturing sectors suggest a promising outlook for China’s economy in the coming months.
(Editor: Wen Jing)