---
title: "China's Manufacturing PMI Rises to 50.4 in March, Non-Manufacturing PMI Increases for Second Consecutive Month"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281104444.md"
description: "More news, continuously updating"
datetime: "2026-03-31T02:01:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281104444.md)
  - [en](https://longbridge.com/en/news/281104444.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281104444.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281104444.md) | [繁體中文](https://longbridge.com/zh-HK/news/281104444.md)


# China's Manufacturing PMI Rises to 50.4 in March, Non-Manufacturing PMI Increases for Second Consecutive Month

After running below 50% for two consecutive months, China's Manufacturing Purchasing Managers' Index (PMI) returned to the expansion zone in March, indicating an improvement in manufacturing prosperity. The overall prosperity level of the non-manufacturing sector also increased for the second consecutive month.

On March 31, the National Bureau of Statistics and the China Federation of Logistics and Purchasing released the China Manufacturing Purchasing Managers' Index for March. Data shows that manufacturing prosperity improved in March, market demand was released well, and enterprise production activities rebounded overall.

## Manufacturing Prosperity Rises, Economy Rebounds and Improves

In March, the Manufacturing Purchasing Managers' Index (PMI) was 50.4%, an increase of 1.4 percentage points from the previous month, above the threshold, indicating a rebound in manufacturing prosperity.

By enterprise size, the PMI for large enterprises was 51.6%, an increase of 0.1 percentage points from the previous month, above the threshold; the PMIs for medium and small enterprises were 49.0% and 49.3% respectively, an increase of 1.5 and 4.5 percentage points from the previous month, both below the threshold.

Looking at the sub-indices, among the five sub-indices that constitute the Manufacturing PMI, the production index and the new orders index were both above the threshold, while the raw material inventory index, the employment index, and the supplier delivery time index were all below the threshold.

The production index was 51.4%, an increase of 1.8 percentage points from the previous month, indicating an acceleration in manufacturing production activities.

The new orders index was 51.6%, an increase of 3.0 percentage points from the previous month, indicating a significant improvement in market demand prosperity for the manufacturing sector.

The raw material inventory index was 47.7%, an increase of 0.2 percentage points from the previous month, indicating a narrowing of the decline in the inventory of major raw materials in the manufacturing sector.

The employment index was 48.6%, an increase of 0.6 percentage points from the previous month, indicating a rebound in the employment prosperity of manufacturing enterprises.

The supplier delivery time index was 49.5%, an increase of 0.4 percentage points from the previous month, below the threshold, indicating that the delivery time for raw material suppliers in the manufacturing sector extended compared to the previous month.

Huo Lihui, Chief Statistician at the Service Industry Survey Center of the National Bureau of Statistics, interpreted:

> In March, as enterprises accelerated their return to work and production after the Spring Festival, market activity increased, and the Manufacturing PMI was 50.4%, returning to the expansion range.
> 
> **(1) Both production and demand expanded synchronously.** The production index and new orders index were 51.4% and 51.6% respectively, an increase of 1.8 and 3.0 percentage points from the previous month, both rising into the expansion range. Manufacturing enterprises' production activities accelerated, and market demand significantly improved. By industry, the production and new orders indices for agricultural and sideline food processing, non-ferrous metal smelting and rolling processing, and other industries were all above 55.0%, with relatively rapid release of production and demand; textile, apparel, footwear, chemical fibers, and rubber and plastic products industries had both indices remaining below the threshold, indicating weak market activity. Driven by the recovery in production and demand, enterprises' purchasing intentions strengthened, and the purchasing volume index was 50.9%, an increase of 2.7 percentage points from the previous month.
> 
> **(2) PMIs for large, medium, and small enterprises all increased.** The PMI for large enterprises was 51.6%, an increase of 0.1 percentage points from the previous month, with stable and rising prosperity; the PMIs for medium and small enterprises were 49.0% and 49.3% respectively, an increase of 1.5 and 4.5 percentage points from the previous month, with significantly improved prosperity.
> 
> **(3) Three key industries expanded rapidly.** The PMI for high-tech manufacturing was 52.1%, an increase of 0.6 percentage points from the previous month, remaining above the threshold for 14 consecutive months, with a continuously improving industry development trend; the PMIs for equipment manufacturing and consumer goods industries were 51.5% and 50.8% respectively, an increase of 1.7 and 2.0 percentage points from the previous month, both rising into the expansion range; the PMI for high-energy-consuming industries was 48.9%, an increase of 1.1 percentage points from the previous month, with a slight rebound in prosperity.
> 
> **(4) Price indices surged.** Affected by the continuous rise in the prices of some bulk commodities recently and the acceleration of enterprise procurement activities, the purchasing price index for major raw materials and the ex-factory price index were 63.9% and 55.4% respectively, an increase of 9.1 and 4.8 percentage points from the previous month, indicating a significant overall rise in market prices in the manufacturing sector. By industry, the two price indices for petroleum, coal, and other fuel processing, chemical raw materials, and chemical products industries were both above 70.0%, with significant overall increases in purchase and sales prices in related industries.
> 
> **(5) Market expectations remained stable and improved.** The production and operation expectation index was 53.4%, an increase of 0.2 percentage points from the previous month, indicating increased confidence among manufacturing enterprises in the recent market development. By industry, the production and operation expectation indices for special equipment, automobiles, railway, ship, and aerospace equipment industries were in a high prosperity range above 56.0%, with related enterprises more optimistic about future industry development.
> 
> The survey results also showed that due to factors such as geopolitical conflicts in the Middle East, prices of raw materials such as petroleum and chemicals rose sharply. Coupled with rising logistics costs, the proportion of enterprises reporting high raw material costs and high logistics costs increased this month compared to the previous month.

## Non-Manufacturing Business Activity Index Rises into Expansion Zone

In March, the Non-Manufacturing Business Activity Index was 50.1%, an increase of 0.6 percentage points from the previous month, above the threshold, indicating an improvement in the prosperity of the non-manufacturing sector.

By industry, the business activity index for the construction industry was 49.3%, an increase of 1.1 percentage points from the previous month; the business activity index for the service industry was 50.2%, an increase of 0.5 percentage points from the previous month. Among service industries, the business activity indices for railway transportation, telecommunications, broadcasting, television, and satellite transmission services, monetary and financial services, and insurance were all in a high prosperity range above 55.0%; the business activity indices for retail, accommodation, catering, and real estate were all below the threshold.

The new orders index was 45.0%, a decrease of 0.2 percentage points from the previous month, indicating a slight decline in non-manufacturing market demand. By industry, the new orders index for the construction industry was 43.5%, an increase of 1.3 percentage points from the previous month; the new orders index for the service industry was 45.3%, a decrease of 0.4 percentage points from the previous month.

The input price index was 52.3%, an increase of 1.4 percentage points from the previous month, indicating that the overall price level of inputs used by non-manufacturing enterprises for business operations continued to rise. By industry, the input price index for the construction industry was 52.7%, an increase of 3.6 percentage points from the previous month; the input price index for the service industry was 52.2%, an increase of 1.0 percentage point from the previous month.

The sales price index was 49.9%, an increase of 1.1 percentage points from the previous month, still below the threshold, indicating a narrowing of the decline in the overall sales price level of the non-manufacturing sector. By industry, the sales price index for the construction industry was 49.3%, an increase of 1.7 percentage points from the previous month; the sales price index for the service industry was 50.0%, an increase of 1.0 percentage point from the previous month.

The employment index was 45.2%, a decrease of 0.8 percentage points from the previous month, indicating a decline in the employment prosperity of non-manufacturing enterprises. By industry, the employment index for the construction industry was 39.1%, a decrease of 3.4 percentage points from the previous month; the employment index for the service industry was 46.2%, a decrease of 0.4 percentage points from the previous month.

The business activity expectation index was 54.2%, a decrease of 0.8 percentage points from the previous month, remaining above the threshold, indicating that non-manufacturing enterprises remain optimistic about market development. By industry, the business activity expectation index for the construction industry was 50.5%, a decrease of 0.4 percentage points from the previous month; the business activity expectation index for the service industry was 54.8%, a decrease of 1.0 percentage point from the previous month.

Huo Lihui, Chief Statistician at the Service Industry Survey Center of the National Bureau of Statistics, interpreted:

> In March, the Non-Manufacturing Business Activity Index was 50.1%, an increase of 0.6 percentage points from the previous month, indicating an improvement in the prosperity of the non-manufacturing sector.
> 
> **(1) The service industry business activity index rose above the threshold.** The service industry business activity index was 50.2%, an increase of 0.5 percentage points from the previous month. By industry, the business activity indices for railway transportation, telecommunications, broadcasting, television, and satellite transmission services, monetary and financial services, and insurance were all in a high prosperity range above 55.0%, with relatively rapid growth in business volume; after the Spring Festival, the business activity indices for retail, accommodation, and catering industries related to resident travel and consumption were below the threshold, indicating a slight decrease in market activity. In terms of market expectations, the service industry business activity expectation index was 54.8%, continuing to run at a high level, indicating that service industry enterprises remain optimistic about recent market development.
> 
> **(2) The construction industry business activity index improved.** As construction projects across various regions gradually resumed work after the festival, the construction industry business activity index was 49.3%, an increase of 1.1 percentage points from the previous month. In terms of market expectations, the construction industry business activity expectation index was 50.5%, above the threshold, indicating that construction industry enterprises remain confident in future industry development.

## Composite PMI Output Index Rises Above the Threshold

In March, the Composite PMI Output Index was 50.5%, an increase of 1.0 percentage point from the previous month, above the threshold, indicating an overall improvement in the prosperity of enterprises' production and operation activities in China.

Huo Lihui, Chief Statistician at the Service Industry Survey Center of the National Bureau of Statistics, stated that the manufacturing production index and the non-manufacturing business activity index, which constitute the Composite PMI Output Index, were 51.4% and 50.1% respectively.

### Related Stocks

- [Shenzhen Index (399001.CN)](https://longbridge.com/en/quote/399001.CN.md)
- [SSE Index (000001.CN)](https://longbridge.com/en/quote/000001.CN.md)
- [CSI 300 (000300.CN)](https://longbridge.com/en/quote/000300.CN.md)

## Related News & Research

- [China's new home prices rise in March; big cities see seasonal pickup, private survey shows](https://longbridge.com/en/news/281299995.md)
- [Guangdong-HKGBA Returns to Profitability in 2025](https://longbridge.com/en/news/281116626.md)
- [S&P: UK Final Manufacturing PMI Down in March](https://longbridge.com/en/news/281332085.md)
- [China's factory activity expands but price pressures intensify, private PMI shows](https://longbridge.com/en/news/281282781.md)
- [Greek manufacturing hits seven-month high in March but costs soar, PMI shows](https://longbridge.com/en/news/281326534.md)