China’s NBS Manufacturing PMI increased 0.3 pts to 50.5 in March, the highest in a year and in line with expectations.

• The Production index edged up 0.1 pts to 52.6, an 11-month high, an the New Order index improved 0.7 pts to 51.8, also an 11-month high.
• Employment maintained a decline, where it has been for the last year.
• The decline in new export orders was the weakest in the 10-month streak of declines as the index improved 0.4 pts to 49.0.
• Factory prices were still in a decline which worsened in March with the index down -0.6 pts to 47.9.
• Expectations were still positive but fell -0.7 pts to 53.8, the weakest so far in 2025.

China’s NBS Nonmanufacturing PMI also saw a marginal improvement, up 0.4 pts to 50.8 in March, slightly above expectations of a 50.5 reading.

• The New Order index remained in a moderate decline, improving 0.5 pts to 46.6.
• Sales prices fell into a sharper decline, down -1.1 pts to 46.7, the lowest since September 2024.
• Like manufacturing, employment continued to contract in the nonmanufacturing sector.
• The New Export Orders index improved 0.3 pts to 49.8, close to the breakeven level.
• Despite most subindexes being in decline, expectations improved 0.6 pts to 57.2.

The improvements in the manufacturing and nonmanufacturing PMI readings led to a rise in the NBS Composite PMI of 0.3 pts to 51.4 in March.