China’s Factory Activity Stalls, Caixin PMI Shows

China’s manufacturing activity stalled in March after expanding in February for the first time in seven months, as growth in both supply and demand softened amid a slowdown in economic recovery, a Caixin-sponsored survey showed Monday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 50 in March, down from 51.6 the previous month. A reading below 50 indicates a contraction in activity, while a number above that signals an expansion.

The PMI is one of the earliest available monthly indicators of business activity in the world’s second-largest economy. Last year, manufacturing accounted for 28% of China’s GDP, according to government data.