AsianFin -- China's factory activity continued to expand in March, providing a positive signal for the world’s second-largest economy as it braces for anticipated US tariffs that could intensify trade tensions.
The official manufacturing purchasing managers' index (PMI) reached 50.5 in March, up from 50.2 in February, according to data released by the National Bureau of Statistics on Monday. This result slightly exceeded the median forecast of 50.4 by economists surveyed by Bloomberg. A PMI reading above 50 indicates expansion in the sector.
Meanwhile, the non-manufacturing PMI, which tracks activity in construction and services, rose to 50.8 from 50.4 in February, falling just short of the forecasted 50.6.
These PMI figures offer a snapshot of China's economic health ahead of the expected introduction of reciprocal tariffs by the Trump administration. In response, China has warned the US of potential retaliation if the tariffs are enacted. Since President Donald Trump's second term began in January, tariffs totaling 20% have already been imposed on Chinese exports.
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