FX.co ★ China Factory Activity Growth Hits 1-Year High

In March 2025, China's official NBS Manufacturing PMI climbed to 50.5, up from 49.1 in February, aligning with market forecasts. This increase signifies the second straight month of growth in manufacturing activities and the most rapid pace in a year, indicating that Beijing's economic stimulus efforts are effectively underpinning the recovery. However, the looming threat of U.S. tariffs remains a potential obstacle to sustained growth. Production saw a slight rise (52.6 compared to 52.5 in February), alongside new orders (51.8 versus 51.1). Additionally, delivery times improved (50.3 instead of 51). On the downside, employment figures slipped (48.2 against 48.6). In terms of pricing, both input costs (49.8 as opposed to 50.8) and selling prices (47.9 versus 48.5) saw declines. Lastly, business confidence dropped to a three-month low (53.8 compared to 54.5), underscoring persistent economic uncertainties due to the impact of potential U.S. tariffs.