FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 15 April 2015

China Manufacturing PMI Recovers to Expansion Range in March

Written by , GEI Associate

In March, China Manufacturing PMI surprisingly rose to 50.1, which is higher than a Reuters forecast of 49.8, and goes back to expansion range (above 50%) after two consecutive months' contraction. However, many analysts still consider that China manufacturing industry still has downside pressure that will prevent further growth.

There are three main reasons which lead to the slight growth of China manufacturing PMI last month.

  • First, most of factories recovered operation after the Chinese New Year festival and production activities accelerated during March, which is one of the main factors promoting the recovery in PMI.
  • Second, under the newly effective reform policies to stablize GDP growth rate and adjust industrial structure, more and more enterprises have a more optimistic attitude about market expectations for the future, which activates their enthusiasm in production and operation.
  • Third, during the last month, the price of some construction steel products recovered, and the decline momentum of oil and some other staple commodities' prices slowed down. These improvements in the market environment brought positive effects on enterprises' production and operation.

However, although PMI recovered slightly in March, it is still lower than the same level a year ago. Added to that, there still exists downside pressure in China's manufacturing industry because both domestic and foreign demands remain weak.

In the meanwhile, China non-manufacturing PMI declined from 53.9 to 53.7 in March. Although it shows a slight decline, the index is still smooth and in stable expansion range. The seasonal fall of service industry is the main reason of the decline. After Chinese spring festival, demands of service which is close related to residents' daily consumption (i.e. catering, air transportation, express, etc) experiences obvious decline.

Nevertheless, some other non-manufacturing industries such as telecom and internet software still maintain a quite high growth rate. Particularly, with the accelerating boost of infrastructure programs, construction enterprises generally are speeding up production activities to meet higher market demand. Therefore, non-manufacturing PMI remains in an overall stable growth level.

With the service sector a growing fraction of the Chinese economy, it will serve to soften the impact of the manufacturing slowdown.

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Contributors


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Comments on Feyerabend’s ‘Against Method’, Part II
Comments on Feyerabend’s ‘Against Method’, Part III
News Blog
14 October 2016: ECRI's WLI Growth Index Insignificantly Declines
Mom Breaks Down In Tears When Son With Autism Meets Service Dog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
What Is The New Normal For U.S. Growth?
Affordable Care Act And Its Effect On Part-Time Employment
The Speed Of Filling Jobs Is Declining
First Working Eggs Made From Stem Cells Points To Fertility Breakthrough
Infographic Of The Day: Mega Machines
Online Platforms Double Down On TV Programming
A History Of Mars Missions
How Tesla Out Innovates Traditional Carmakers
Schiaparelli's Descent To Mars In Real Time
September 2016 Existing Home Sales Still Not Excellent
Investing Blog
Options Early Assignment - Should You Worry?
The 401k Plan Manager 17 October 2016
Opinion Blog
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Obama's Middle East Policy Has Been A Complete Failure - Or Has It?
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved