March PMI signals recovery across China’s industry and services

March 31, 2026 (MLN): China’s manufacturing and non-manufacturing sectors both returned to expansionary territory in March.

The manufacturing purchasing managers’ index (PMI) rose to 50.4, up 1.4 points from February, while the non-manufacturing PMI increased 0.6 points to 50.1, according to the National Bureau of Statistics (NBS), APP reported.

The rebound in manufacturing was attributed to accelerated resumption of work and production following the Spring Festival holiday, as well as increased market activity, NBS statistician Huo Lihui said.

Production and new orders strengthened, with sub-indices at 51.4 and 51.6, respectively, and sectors including agricultural and sideline food processing and nonferrous metals smelting and rolling reporting readings above 55.

Procurement activity also picked up, with the purchasing volume index climbing to 50.9.

Large enterprises maintained steady expansion at 51.6, while medium-sized and small firms showed notable improvements, rising to 49 and 49.3, respectively.

High-tech manufacturing continued its 14-month run above 50, hitting 52.1, while equipment manufacturing and consumer goods industries returned to expansionary territory.

Rising commodity prices and accelerated procurement pushed indices for raw material purchase prices and factory gate prices higher since February.

Production and business expectations edged up to 53.4, reflecting growing confidence, especially in specialized equipment, automobiles, railways, shipbuilding, aerospace, and other transport equipment sectors.

Analyst Zhang Liqun of the China Federation of Logistics and Purchasing highlighted that the March PMI rebound reflects both seasonal factors and increased confidence across sectors.

He stressed the importance of sustaining momentum by implementing policies from this month’s “two sessions,” advancing major projects, boosting orders, production, employment, and consumer demand.

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