Overview

• China's official purchasing managers' index (PMI) rose to 50.8 in March, indicating expansion for the first time in six months.
• The increase in PMI suggests an improvement in domestic supply and demand, alongside rising business and consumer confidence.
• New export orders entered positive territory, breaking an 11-month slump, although employment rates continued to decline.
• The non-manufacturing PMI, covering services and construction, also increased, reaching its highest level since September.
• Analysts have begun to upgrade their growth forecasts for China, but caution that further stimulus may be needed to achieve the 5% economic growth target set for 2024.