ECONOMY

China’s Factory Activity Returns to Expansion in March Amid Surging Costs

Published: Apr. 1, 2026 3:02 p.m. GMT+8

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China’s factory activity returned to expansion in March as post-holiday production resumed and domestic demand warmed, although surging raw material prices strained manufacturers.

The manufacturing purchasing managers’ (PMI) index rose 1.4 points to 50.4 in March, the National Bureau of Statistics (NBS) said Tuesday. The non-manufacturing PMI, which measures activity in the services sector, increased 0.6 points to 50.1, bringing both gauges above the 50 mark that separates expansion from contraction. The composite PMI reached 50.5, climbing 1 point from February.

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China's March manufacturing PMI rose 1.4 pts to 50.4; non-manufacturing up 0.6 to 50.1; composite to 50.5.
Production at 51.4 (+1.8 pts), new orders 51.6 (+3 pts); export orders 49.1; raw material prices 63.9.
Services PMI 50.2 ended contraction; construction 49.3; prices strained by global commodities.

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