Meghavi Singh,
Igor Kutyaev
- The manufacturing sector in China continued its expansion in March 2024, with the Caixin China General Manufacturing PMI rising to 51.1 from 50.9 in the previous month, boosted by higher new orders from domestic and abroad.
- Meanwhile, employment levels declined again in March. The labor market remained contracted despite the expansion of supply and demand.
- Overall optimism among Chinese manufacturers improved for a third straight month in March. Firms pinned hopes of rising manufacturing activity upon a better economic outlook. The level of business confidence was the highest seen since April 2023.
- “Both supply and demand expanded at a faster pace amid the market upturn. In March, growth in manufacturers’ output and total new orders accelerated, with the former hitting a 10-month high. External demand also picked up pace thanks to the recovery in the global economy, pushing the gauge for new export orders to its highest level since February 2023,” said Wang Zhe, Senior Economist at Caixin Insight Group.
- “Supplier delivery times were shortened due to a quick recovery in logistics, which had been affected by poor weather conditions in some regions, bringing the corresponding gauge back to expansion. Meanwhile, following the market upturn, manufacturers were more willing to increase their purchases, while the gauge for raw material inventories recorded its highest level since November 2020,” he added.
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