The Caixin Purchasing Managers' Index (PMI), published by the Chinese financial information provider Caixin, recorded 51.2 last month, marking the highest level in four months.
According to Caixin and Reuters on the 1st, the manufacturing PMI for March rose by 0.4 points to 51.2 from last month's 50.8, maintaining a phase of economic expansion. This surpassed the Reuters market forecast of 51.1 and was the highest since December of last year, similar to the manufacturing PMI of 50.5 announced by China's National Bureau of Statistics on the 31st of last month, which was the highest in a year.
The PMI statistics, based on a survey of purchasing managers in corporations, are indicators showing economic trends. A value above 50 indicates economic expansion, while below 50 indicates economic contraction.
With export orders reaching the highest level in 11 months, a surge in new orders has been analyzed as improving corporate sentiment. Experts noted that U.S. importers stocking up on Chinese products before additional tariffs against China had a partial impact on this.
However, Wang Zhe, a Caixin analyst, evaluated that "the job market remains relatively stagnant, and ongoing deflationary pressures due to insufficient effective demand continue to persist."
Additionally, with U.S. President Donald Trump imposing a total of 20% additional tariffs on China in two phases and a mutual tariff announcement expected two days later, the U.S.-China trade war is also acting as a downward factor for the Chinese economy.