03-Mar-2025 08:08

China's manufacturing economy expanded at a faster rate in February, supported by concurrent rises in both output and new orders amid evidence of improved market conditions.

Purchasing activity growth also picked up, whilst confidence in the outlook strengthened to a three-month high. A reduction in employment was recorded, but at a noticeably slower rate than at the start of the year.

On the price front, costs were only marginally higher whilst discounting of output charges was registered for a third month running.

The headline seasonally adjusted Purchasing Managers' Index (PMI) improved to a three-month high of 50.8 in February.

That was up from January's 50.1 and, although indicative of only a marginal improvement in operating conditions, represented the best outcome for the headline index since last November.

Latest data also marked the fifth successive month in which the PMI has posted above the crucial 50.0 no-change mark.

Supporting the headline index in February were concurrent uplifts in both production and new orders. Manufacturers supported higher production requirements by increasing their purchasing activity and, where applicable, utilising existing stocks of inputs.

Chinese manufacturers once again reported on average a drop in staffing levels at their plants in February, extending the current period of decline to six months.

Meanwhile, input price inflation was recorded in February with firms noting higher prices paid for copper and a range of chemicals.

Finally, confidence in the outlook improved further in February, with sentiment rising for a second successive month and moving closer to its long-run average.

Powered by Commodity Insights