China’s official manufacturing PMI rose to 50.4 in March from 49, beating the
50.1 forecast and marking the first expansion this year, while the
non-manufacturing gauge climbed to 50.1 from 49.5. The rebound reflects stronger
fiscal support and resilient exports, partly driven by AI-related global demand,
ending a two-month contraction. However, escalating Middle East conflict has
pushed up energy costs, weighing on factories reliant on oil inputs. While trade
volumes remain solid, risks from global slowdown, geopolitical tensions and
rising inflation continue to cloud the outlook.
