The manufacturing purchasing managers' index (PMI), which shows the economic trends in China, has continued its 'economic expansion' phase for two consecutive months.
China's National Bureau of Statistics announced on the 31st (local time) that the manufacturing PMI for March was recorded at 50.5, up 0.3 points from the previous month. The PMI, based on corporate purchasing surveys, is an indicator showing economic trends. A score above 50 indicates economic expansion, while a score below indicates economic contraction.
China's manufacturing PMI returned to an expansion phase in October of last year at 50.1 and maintained above 50 for three consecutive months before falling to 49.1 in January. It then rose to 50.2 in February, returning to an expansion phase, and has maintained this in the current month. According to Reuters, this is consistent with market expectations and is interpreted as a sign of stabilization despite increasing trade uncertainty in China.
By corporation size, the large corporations' PMI fell by 1.3 points to 51.2 compared to the previous month, while the PMI for small and medium-sized enterprises increased from the previous month. Among the five indices that make up the manufacturing PMI, the production index (52.6, up 0.1 points from the previous month), the new orders index (51.8, up 0.7 points from the previous month), and the supplier delivery time index (50.3, down 0.7 points from the previous month) exceeded the baseline.
The raw materials inventory index rose 0.2 points to 47.2 compared to the previous month but still fell below the baseline, while the employment index dropped 0.4 points to 48.2. The non-manufacturing PMI, composed of construction and services, increased by 0.4 points to 50.8 in March compared to the previous month.
By sector, the construction industry business index rose 0.7 points to 53.4, and the services industry business index also rose to 50.3, up 0.3 points. The composite PMI for China's manufacturing and non-manufacturing in March was 51.4, up 0.3 points from the previous month.
The National Bureau of Statistics noted, 'This month, the impact of the Spring Festival (Lunar New Year) factors gradually diminished, accelerating corporations' production and management activities,' and assessed that 'China's economy has generally continued its expansionary trend.'