China factory activity returns to expansion in March
Economists expect China's manufacturing PMI to reach 50.1 in March. Strong exports support growth despite supply chain risks from the Middle East conflict.
Manufacturing activity in China is expected to return to expansion in March, potentially ending a two-month period of contraction. This shift comes as goods exports show strong momentum, although supply chain disruptions stemming from the conflict in Iran continue to cloud the economic outlook.
A Reuters poll of 28 economists indicates that the official manufacturing purchasing managers index (PMI) is likely to rise to 50.1 from 49.0 in February. This reading would place the sector just above the 50-mark that separates growth from contraction. The official data, compiled by the National Bureau of Statistics, is set for release on Tuesday. While domestic consumption has been hampered by price wars and weak demand, the export sector has remained a vital driver of growth. This resilience persists despite previous trade tensions and tariffs imposed by the United States.
