Chinese financial information provider Caixin reported that the Caixin Manufacturing Purchasing Managers' Index (PMI) recorded 51.2 last month, marking the highest level in four months.
According to Caixin on the 1st, the manufacturing PMI for March was 51.2, up 0.4 points from February's 50.8. This is the highest level since December last year and slightly exceeds the market expectation of 51.1.
Caixin explained that this indicates manufacturing production and operational activities are rapidly expanding as the effects of the Chinese Lunar New Year holiday, Chunje, have eased. Previously, the National Bureau of Statistics of China announced that the March manufacturing PMI also recorded 50.5, the highest in a year, continuing the expansion phase.
The PMI statistics, based on surveys of company purchasing managers, serve as indicators of economic trends. A reading above the baseline of 50 indicates economic expansion, while below 50 indicates contraction. The manufacturing PMI has maintained an expansion phase for six consecutive months.
According to the Caixin survey, manufacturers' production reached the highest level in four months, and new export orders rose to the highest level since May 2024. However, analysts explained that some of the surge in shipments is due to U.S. importers stockpiling Chinese goods ahead of tariff increases.
The employment index expanded for the first time since September 2023, showing signs of improvement in employment.
Wang Zhe, a Caixin analyst, said, "In the first two months of 2025, major macroeconomic indicators met or slightly exceeded market expectations, and economic operations started steadily. However, the current employment market remains sluggish, and deflationary pressures objectively exist. The external environment is becoming more severe and complex. Macroeconomic policies need to be more proactive and preemptive to support the continuous recovery of the economy."
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