This would be a sign of recovery of the Asian country's economy. In addition, external demand also accelerated thanks to the recovery of the global economy.
The growth of factory activity in China has registered its highest rate of expansion in the last 13 months in March, according to the manufacturing purchasing managers index (PMI) prepared by the consulting firm Caixin, which has reached 51.1 points. from 50.9 the previous month, thus remaining in the expansion zone for the fifth consecutive month, above the threshold of 50 points.
This improvement is added to that reflected in the data from the National Bureau of Statistics of China, whose manufacturing PMI reached its highest level in a year in March, with a reading of 50.8 points, compared to 49.1 in the last month.
In his analysis, Caixin Insight Group senior economist Wang Zhe highlighted that both supply and demand increased at a faster pace amid the market recovery, with growth in manufacturing output and prices accelerating. new orders, while external demand also accelerated thanks to the recovery of the global economy.
For its part, employment in China's manufacturing sector fell slightly in March, as manufacturers were reluctant to fill vacant positions due to cost concerns, thus accumulating seven consecutive months of decline, which was also reflected in an increase in delays in work due to increased demand.
Likewise, in the month of March prices remained low thanks to the cheaper raw materials, which reduced production costs for manufacturers, "giving them room to lower prices amid fierce competition in the market." In this way, both input costs and product prices have reached their lowest levels since July 2023.
"Overall, the manufacturing sector continued to improve in March, with an acceleration of the expansion of supply and demand and a rebound in foreign demand," summarized Wang Zhe, for whom the economic performance in the first two months of this year "was better than expected," with five consecutive months of manufacturing sector expansion, pointing to a generally stable and positive economic recovery.
"However, the economy still faces obstacles due to prevailing uncertainty and unfavorable factors," he warned, referring to the fact that employment remains weak, prices low and effective demand insufficient, which would highlight the need to boost even more internal and external demand.
"Given the current economic headwinds and an ambitious target for economic growth this year, consistent efforts must be made to accelerate growth while improving the quality and efficiency of economic development," he added.
