China Manufacturing Sector Expands for Fourth Month
China's factory activity grew for a fourth month in March as the PMI hit 50.8. Rising input costs and supply chain delays are now weighing on the outlook.
Manufacturing in China continued to expand in March, marking the fourth consecutive month of growth. However, a private-sector survey released on Wednesday highlighted a significant intensification of price pressures despite the ongoing rise in output and new orders. The RatingDog China General Manufacturing Purchasing Managers Index (PMI), compiled by S&P Global Inc., fell to 50.8 in March from 52.1 in February, missing analysts' forecast of 51.6. The 50-mark separates growth from contraction. An official survey showed on Tuesday that factory activity grew at the fastest pace in a year in March, underpinned by improved demand.
New orders increased for a 10th straight month in March, while production rose for a fourth consecutive month. Over the first quarter of 2026 as a whole, output growth was the fastest since the fourth quarter of 2024. New export business also rose, but the pace slowed from February. Notably, cost pressures intensified significantly during the period.
