China Caixin Manufacturing PMI dropped to 50.6 in March, down from 50.9, missed expectation of 51.0. Markit noted that production increased again amid further uptick in sales. Export orders rose for the first time in three months. Inflationary pressures also picked up.
Wang Zhe, Senior Economist at Caixin Insight Group said: “Overall, the manufacturing sector continued to recover in March, but the momentum of both supply and demand weakened. Overseas demand largely improved. The sector remained under employment pressure. Manufacturing enterprises were still confident that the economy will continue to recover and that the pandemic will be brought under control, with the gauge for future output expectations exceeding the long-term average.
“We should pay attention to inflation in future as the gauges for input and output prices have been rising for several months. The growing inflationary pressure limits the room for future policies and is not a good thing for sustaining an economic recovery in the postepidemic period.”
