**China’s Manufacturing PMI in March Hits 50.8%, Indicates Economic Expansion**
New data released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing on March 31 revealed that China’s manufacturing purchasing managers’ index (PMI) for March reached 50.8%, marking a 1.7 percentage point increase from the previous month and entering the expansion range.
The PMI is a crucial macroeconomic indicator used globally for monitoring and providing early warning signs. A value above 50% suggests economic expansion, and China’s return to the expansion range indicates a strengthening economic recovery.
Among the 21 industries surveyed, 15 were classified as expanding in March, which is 10 more industries than in February, showing a significant growth in the manufacturing sector. Huo Lihui, director of the Enterprise Prosperity Department at the Service Industry Survey Center, highlighted that key industries such as equipment manufacturing, high-tech manufacturing, and consumer goods industries all saw increases in PMI above the overall manufacturing level.
Both manufacturing production and demand showed significant rebounds compared to February, with new orders index rising above the critical point for the first time since October. Additionally, the import and export prosperity of the manufacturing industry improved, with new export orders index and import index entering the expansion range.
Cai Jin, vice president of the China Federation of Logistics and Purchasing, emphasized the unexpected rise in demand indicators, particularly in new orders and new export orders. The overall economic growth synergy is positive, indicating a strengthening upward trend in China’s economic recovery.
Additionally, the non-manufacturing business activity index for March stood at 53%, a 1.6 percentage point increase from February, signaling a continued recovery in activity levels. The service industry, in particular, saw significant growth with the business activity index of various sectors exceeding 60% in the high-prosperity range.
As both manufacturing and non-manufacturing sectors show positive performance, the interconnection between the two is expected to further drive China’s economy towards recovery and expansion.