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China's manufacturing PMI expands to 50.4 in March

By Zhang Chenxu | chinadaily.com.cn | Updated: 2026-03-31 11:36
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A worker works on a wire harness production line at an electronics technology company in Suixian county of Shangqiu city, Central China's Henan province, Jan 27, 2026. [Photo/Xinhua]

China's factory activity saw a notable rebound in March, returning to expansion territory above the 50-point mark after two consecutive months of contraction, official data showed on Tuesday.

Data from the National Bureau of Statistics showed that China's official purchasing managers' index (PMI) for the manufacturing sector stood at 50.4 in March, up 1.4 percentage points from 49.0 in February.

Huo Lihui, an NBS statistician, attributed the improvement to the rapid resumption of work and production following the Spring Festival holiday, as well as increased market activity, with the production index and the new orders index both returning to expansion territory.

The sub-index for production stood at 51.4 in March, up from 49.6 in February, while the gauge for new orders came in at 51.6, up 3 percentage points from the previous month, the NBS reported.

Meanwhile, the PMI readings for major industries all improved from February. High-tech manufacturing posted a PMI reading of 52.1 in March, up 0.6 percentage points from February, and remained in expansion territory for 14 consecutive months.

By enterprise size, the sub-index for large enterprises came in at 51.6 in March, up 0.1 percentage points month on month, while those for medium-sized and small enterprises rose 1.5 and 4.5 percentage points to 49.0 and 49.3, respectively, though both remained below the 50-point threshold.

Price indicators gained clear upward momentum in March. The sub-index measuring purchase prices of major raw materials rose 9.1 percentage points from February to 63.9, while the ex-factory price index climbed to 55.4, up 4.8 percentage points from a month earlier.

Meanwhile, China's non-manufacturing PMI, which includes sub-indexes for service sector activity and construction, came in at 50.1 in March, up 0.6 percentage points month on month. The services sector also saw a notable improvement, as the business activity index rose to 50.2, up 0.5 percentage points, moving back into expansion territory.

The country's official composite PMI, which encompasses both manufacturing and non-manufacturing activities, stood at 50.5 in March, up 1.0 percentage point from the previous month, NBS data showed.

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