The Purchasing Managers' Index (PMI) for China's manufacturing and non-manufacturing sectors returned to expansion territory in March, according to data released by the National Bureau of Statistics. The manufacturing PMI rose to 50.4%, the non-manufacturing business activity index reached 50.1%, and the composite PMI output index stood at 50.5%, marking increases of 1.4, 0.6, and 1.0 percentage points respectively from the previous month.

Manufacturing PMI Returns to Expansion Zone With enterprises accelerating work resumption after the Spring Festival holiday, market activity improved, pushing the manufacturing PMI back above the 50-point mark that separates expansion from contraction. Both production and new orders indexes expanded simultaneously, registering 51.4% and 51.6% respectively. Companies demonstrated stronger procurement willingness as the purchasing quantity index climbed to 50.9%. PMI readings for large, medium, and small enterprises all showed improvement, with large enterprises maintaining stable expansion at 51.6% while medium and small enterprises saw significant rebounds to 49.0% and 49.3% respectively.

Key industries demonstrated robust expansion momentum. High-tech manufacturing PMI remained in expansion territory for the 14th consecutive month at 52.1%. Equipment manufacturing and consumer goods sectors both returned to expansion zone with readings of 51.5% and 50.8%. Price indexes recorded substantial increases, with major raw material purchase price index and ex-factory price index jumping to 63.9% and 55.4% respectively, driven by rising commodity prices and accelerated procurement activities. The production and operation expectation index edged up to 53.4%, indicating enhanced business confidence.

Non-Manufacturing Sector Sees Improvement The non-manufacturing business activity index rose to 50.1%, reflecting improved景气水平 in the sector. The services business activity index climbed above the critical point to 50.2%, with railways transport, telecommunications, financial services and insurance industries maintaining strong expansion above 55%. The construction business activity index improved to 49.3% as projects resumed work nationwide, while the sector's expectation index remained in expansion territory at 50.5%.

Composite PMI Output Index Rises The composite PMI output index, which combines manufacturing production and non-manufacturing business activity, increased to 50.5%, indicating overall improvement in Chinese enterprises' production and operation景气水平.