China's manufacturing activity speeds up in March, data shows

Purchasing managers' index hits highest in a year in positive sign for economy

China has kept its economic target for this year unchanged at "around 5%," despite new tariffs from U.S. President Donald Trump that threaten to hit the massive export sector. © Reuters

March 31, 2025 11:37 JST

BEIJING (Reuters) -- China's manufacturing activity expanded at the fastest pace in a year in March, an official factory survey showed on Monday, in a positive sign for the world's second-largest economy as it deals with an escalating U.S. trade war.

The official purchasing managers' index (PMI) was 50.5 in March versus 50.2 in February, above the 50-mark separating growth from contraction, and matching a median forecast of 50.5 in a Reuters poll. It was the highest PMI reading since March 2024.