In Line with Market Expectations...
"Export Resilience Despite US Tariffs"
China's manufacturing Purchasing Managers' Index (PMI) continued its expansion phase for the second consecutive month.
On the 31st, the National Bureau of Statistics of China announced that the manufacturing PMI for March rose by 0.3 points from the previous month to 50.5.
This result met Reuters' market expectations and marked the highest level in one year. The US economic media CNBC reported it as the fastest expansion since March last year.
The PMI, based on surveys of corporate purchasing managers, is an indicator showing economic trends. A reading above the baseline of 50 indicates economic expansion, while below 50 indicates contraction.
China's manufacturing PMI had returned to expansion territory at 50.1 in October last year, when authorities showed strong determination to stimulate the economy, maintaining above 50 for three consecutive months before falling to 49.1 in January. After the Chinese Lunar New Year holiday, known as Chunje, factory operations resumed, and the PMI returned to expansion at 50.2 in February.
By company size, the PMI for large enterprises was 51.2, down 1.3 points from the previous month.
The PMI for medium-sized enterprises was 49.9, and for small enterprises 49.6, rising 0.7 points and 3.3 points respectively compared to the previous month.
Among the five major indices that make up the manufacturing PMI, the production index (52.6, up 0.1 points from the previous month), new orders index (51.8, up 0.7 points), and supplier delivery time index (50.3, down 0.7 points) remained above the baseline.
However, the raw materials inventory index was 47.2, up 0.2 points from the previous month but still below the baseline.
The employment index fell 0.4 points from the previous month to 48.2, indicating a worsening employment environment for manufacturing companies.
Julian Evans-Pritchard, China economist at Capital Economics, said, "Infrastructure spending is rising again, and despite US tariffs, exports remain resilient," but added, "The weakness in the services sector and unfavorable base effects mean the economy in the first quarter is growing more slowly than in the fourth quarter of last year."
The non-manufacturing PMI, composed of construction and services sectors, rose 0.4 points from the previous month to 50.8, marking the highest level in three months.
By industry, construction rose 0.7 points to 53.4, and services increased 0.3 points to 50.3.
The composite PMI for March, combining manufacturing and non-manufacturing, was 51.4, up 0.3 points from the previous month.
The National Bureau of Statistics evaluated that "the expansion of production and business activities of Chinese companies is accelerating overall."
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