China Manufacturing Activity Expands

(RTTNews) - China's manufacturing activity continued to expand in March but the pace of growth moderated from the previous month, survey results from S&P Global showed Wednesday.

The headline RatingDog manufacturing Purchasing Managers' Index fell to 50.8 in March from 52.1 in February.

Although the indicator dropped from February's recent peak, the score signaled the second-strongest growth in the past six months.

New orders increased on strong market demand, customer acquisitions, business expansion, promotions and competitive pricing. However, the rate of growth eased from February's multi-year high.

At the same time, production increased for the fourth straight month though the rate of growth softened. The survey showed that backlogs of work increased at a faster pace in March.

Manufacturers increased their headcounts in March with backlogs and new orders continuing to rise. Employment rose for the third month, marking the longest period of job creation since mid-2021.

Further, the survey showed that lead times lengthened for the first time in five months. The degree to which times increased was the greatest since December 2022. Input stocks rose slightly, while inventories of finished goods contracted marginally.

There was a notable uptick in cost inflationary pressures in the manufacturing sector. Input price inflation accelerated strongly to the highest since March 2022 and output price inflation picked up to a four-year high. Chinese manufacturers remained positive about the outlook but the level of sentiment eased from February's recent peak.

"Domestically, the 2026 Government Work Report set a GDP growth target within a flexible range of 4.5% to 5%, largely in line with market expectations," RatingDog Founder Yao Yu said.

This reflects a general policy stance of "seeking progress while maintaining stability," which is expected to provide moderate underpinning for manufacturing activity, albeit without implying significant stimulus, Yu added.