China's manufacturing sector returned to expansion territory in March 2026, with the Purchasing Managers' Index (PMI) rising to 50.4 — its highest level in 12 months — according to data released by the National Bureau of Statistics. The 1.4 percentage point increase from February marks a significant turnaround, driven by post-Spring Festival production resumptions and strengthened market activity.
Huo Lihui, chief statistician at the Service Industry Survey Center, attributed the growth to coordinated recovery across key industries. Agricultural processing and non-ferrous metal sectors demonstrated particularly strong momentum, with production and new order indices exceeding 55.0.
High-tech manufacturing continued its 14-month expansion streak, maintaining a PMI of 52.1. The non-manufacturing sector also saw improvement, with its business activity index reaching 50.1. Service industries such as railway transport, telecommunications, and financial services reported business volume growth above 55.0.
Construction activity showed gradual recovery, with its index climbing to 49.3 as national projects resumed post-holiday operations. This multi-sector rebound underscores the Chinese mainland's economic resilience amid global uncertainties.
