Chinese manufacturing growth accelerates as export sales rise
By Benjamin Chiou
Date: Tuesday 01 Apr 2025
(Sharecast News) - China's manufacturing sector expanded more than expected in March, growing at its fastest rate in four months due to sustained rise in new orders, according to data out on Tuesday from Caixin and S&P Global.
The Caixin Chinese manufacturing purchasing managers' index (PMI) rose to 51.2 last month, up from 50.8 in February and marginally ahead of the 51.1 consensus forecast.
This was the sixth straight month of growth - indicated by a reading over the neutral 50-point mark - and the highest print since November.
"Better demand conditions, alongside successful business development efforts and the launch of new products, underpinned the latest uptick in new business inflows. External demand improved as well, with firms signalling the fastest rise in new export orders in just under a year," the survey said.
New export sales rose at their fastest pace in nearly a year, the survey said, helping Chinese manufacturers to raise their purchasing activity and raise employment levels. Meanwhile, average input costs dropped for the first time in six months, helping producers to lower selling prices.
Business sentiment is also said to have remained positive, with new products and promotional efforts expected to support sales and output over the next 12 months. However, rising uncertainties regarding protectionist trade policies were listed as a concern by the industry.
"The major macroeconomic indicators in the first two months were in line with or slightly exceeded market expectations. The economy had a stable start to the year, with signs of further recovery and improvement. However, the job market remained relatively sluggish, and deflationary pressures persisted, due to insufficient effective demand at home and market participants' weak optimism," said Wang Zhe, senior economist at Caixin Insight Group.
"In 2025, as the external environment becomes increasingly severe and complex, China's macroeconomic policies need to be more proactive and decisive, with measures implemented as soon as possible to support a sustained economic recovery
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