Official data: China’s manufacturing hits one-year high on rising domestic and export demand
While official PMI readings and industrial production have shown a looser-than-usual correlation over the past year, both point to a solid start to 2026 for China’s industrial activity.
China’s factory sector posted its fastest expansion in a year in March, driven by rising domestic and external demand, official data from the National Bureau of Statistics (NBS) showed on Tuesday. While official PMI readings and industrial production have shown a looser-than-usual correlation over the past year, both point to a solid start to 2026 for China’s industrial activity.
The manufacturing PMI rose to 50.4 from 49.0 in February, surpassing the 50-point growth threshold and beating a Reuters poll forecast of 50.1. This marks the highest reading since March 2025, following more than a year of subdued activity.
Broad-based gains underpinned the rebound. Production climbed to 51.4, manufacturing new orders to 51.6, and employment to 48.6, while new export orders rose to 49.1, their highest since April 2024, reflecting steady support from overseas markets.
The non-manufacturing PMI, which tracks services and construction, also edged higher to 50.1 from 49.5, signalling modest expansion across the wider economy.
Analysts noted that the Lunar New Year, which fell in February this year and extended to a record nine-day break, may have distorted the month-on-month comparison despite seasonal adjustments.
Written by: Farid Muzaffar