China's manufacturing industry saw further growth in March, driven by an increased volume of new work, according to data from S&P Global released on Monday. The Purchasing Managers' Index for manufacturing rose to 51.1 in March, up from 50.9 in February, signaling expansion.
This figure reflects the industry's most significant growth in the last 13 months. The data showed improved production and incoming order rates, including export orders, among manufacturers.
Nevertheless, the sector witnessed another drop in employment levels in March, and average input costs fell for the first time since July 2023. Manufacturers also reduced their selling prices at the quickest pace seen in the past eight months.
Despite these challenges, optimism among Chinese manufacturers has strengthened consistently over the past three months.
However, Wang Zhe, a Senior Economist at Caixin Insight Group, warned of ongoing economic pressures. He mentioned the persistent employment issues, low pricing, and an unresolved lack of effective demand. Wang underscored the need to do more to stimulate both domestic and external demand.
