China's Factory Activity Expands in March 2025

China's factory activity expanded for the first time in several months in March 2025, according to official data released Tuesday by the National Bureau of Statistics, signaling a tentative recovery in the world's second-largest economy despite escalating geopolitical tensions in the Middle East.

The manufacturing purchasing managers' index rose to 50.4 from 49.0 in February, crossing the 50-point threshold that separates growth from contraction and marking the strongest reading in a year. The non-manufacturing PMI, which covers services and construction, also improved to 50.1 from 49.5, indicating expansion in those sectors as well. These figures exceeded economists' median forecast of 50.1 for manufacturing and came after two months of contraction in factory output.

The rebound was driven by several factors. New orders climbed to 52.1 from 48.7, reflecting stronger domestic and international demand, while production accelerated to 53.4 from 49.2. Export orders, though still below 50 at 49.1, showed improvement from February's 45 reading, bolstered by resilient global appetite for Chinese electronics and machinery linked to artificial intelligence. Supplier delivery times eased...