China's PMI returns to expansionary territory in March as ec

BEIJING, March 31 (Xinhua) -- China's manufacturing and non-manufacturing sectors both rebounded into expansionary territory in March, signaling a notable pickup in economic vitality, official data showed on Tuesday.

The purchasing managers' index (PMI) for China's manufacturing sector stood at 50.4 in March, up 1.4 percentage points from the previous month, the National Bureau of Statistics (NBS) said in a statement.

A reading above 50 indicates expansion, while one below 50 reflects contraction.

Huo Lihui, a statistician with the NBS, attributed this rebound to the accelerated resumption of work and production by enterprises after the Spring Festival holiday, alongside a boost in market activity.

The manufacturing sector saw growth in both production and demand. The sub-indices for production and new orders stood at 51.4 and 51.6, respectively, rising by 1.8 and 3 percentage points from the previous month. Notably, industries such as agricultural and sideline food processing, and nonferrous metals smelting and rolling, posted readings above 55.

Driven by a recovery in production and demand, the procurement volume index climbed to 50.9, up 2.7 percentage points.

Large enterprises maintained steady expansion with a PMI of 51.6, up 0.1 percentage points. Medium-sized and small enterprises saw significant improvements, as their PMI readings rose to 49 and 49.3, respectively, increases of 1.5 and 4.5 percentage points month on month.

The PMI for high-tech manufacturing stood at 52.1 in March, up 0.6 percentage points from last month and marking the 14th consecutive month above the 50-threshold.

The equipment manufacturing and consumer goods industries both entered expansionary territory, with PMIs of 51.5 and 50.8, respectively, representing increases of 1.7 and 2 percentage points, while the energy-intensive industries also saw a moderate recovery, with their PMI rising 1.1 percentage points to 48.9.

Driven by rising commodity prices and accelerated procurement activity, the indices for major raw material purchase prices and factory gate prices both rose sharply starting in February.

The sub-index for production and business expectations edged up 0.2 percentage points to 53.4, indicating strengthening confidence among manufacturing firms. Sectors such as specialized equipment, automobiles, railways, shipbuilding, aerospace, and other transport equipment posted readings above 56, reflecting particularly optimistic outlooks.

Zhang Liqun, an analyst with the China Federation of Logistics and Purchasing, noted that the notable rebound in the March PMI reflects both seasonal factors and a clear boost in confidence across various sectors.

Zhang emphasized the importance of sustaining the momentum by fully implementing the deployments made during the "two sessions" earlier this month, calling for intensifying counter-cyclical adjustments, ensuring the effective implementation of major projects, and continuing to drive growth in enterprise orders, recovery in production, an increase in employment, and expansion of consumer demand.

Tuesday's data also revealed that the PMI for China's non-manufacturing sector came in at 50.1 in March, up 0.6 percentage points from the previous month.