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
Are You Feeling the Economic Surge?
Big Mess in Italy
News Blog
How Much Money It Costs To Make Money
Multiple Jobs Needed To Make Ends Meet
The Final Crisis Chronicle: The Panic Of 1907 And The Birth Of The Fed
Is There A Gender Wage Growth Gap?
Moving Averages Can Identify A Trade
Infographic Of The Day: Hobbies That Will Make You Money
Earnings And Economic Reports: Week Starting 05 December 2016
Early Headlines: Green Pty Cancels - Then Appeals PA Recount, IRS Serves Summons On Bitcoin Co, Most Mfg Jobs Lost To Automation, 2017 US Hosing Outlook And More
The Smartphone Market Is Not A Two-Horse Race
Italy's Referendum: What's At Stake And What You Need To Know
There Were Over A Million Casualties At The Somme
The Best Countries In The World
What We Read Today 03 December 2016 - Public Edition
Investing Blog
How To Invest When The Fed Destroys Capitalism
Technical Thoughts: Manage Risk
Opinion Blog
Why Did Trump Win? A Different Perspective, Part 3
Jobs Without Disruptions Through Concordian Economics
Precious Metals Blog
Silver Prices Rebounded Today: Where They Are Headed
Live Markets
02Dec2016 Market Close: WTI Crude Climbed Back Up To Previous 51 Handle, US Dollar Index Trading At The100 Level, Oil Rig Count At 10-Month High
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