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    In March, Caixin China'S Manufacturing PMI Recorded A First 50.8 Expansion In Four Months.

    2019/4/2 8:01:00 14516

    Manufacturing IndustryPMIExpansionInterval

                                                                         

         

    In April 1st, Caixin China's Manufacturing Purchasing Managers Index (PMI) released in March was 50.8, up 0.9 percentage points from February, and for the first time in four months, it reached the level of July 2018.

      

    This trend is in line with the PMI of the National Bureau of statistics. The PMI released by the National Bureau of statistics in March was 50.5, up 1.3 percentage points, and for the first time since November 2018.

      

    In March, China's manufacturing output expanded for two consecutive months, but the growth rate was still small.

    Manufacturers reflect that output growth mainly comes from the total volume of new orders.

    The total volume of new orders rose for two consecutive months, although the growth rate was low, but there were signs of strength. The new export orders index also reversed the contraction in February, and picked up slightly.

    In the first quarter of 2019, the total volume of new export orders was generally stable, and had been rid of the main trend of 2018.

      

    The increase in output and development of new businesses by some manufacturers required increased manpower. In March, manufacturing employment expanded for the first time in more than five years.

    The reasons for the increase in employment include continued tension in manufacturing capacity and a steady increase in backlog.

      

    After three months in a row, the cost of investment rose slightly in March.

    Respondents said that the cost recovery was mainly related to the price rise of raw materials, especially steel, non-ferrous metals and packaging materials.

    With a slight increase in input costs, manufacturers generally continue to raise the price of products slightly and pfer additional input costs to customers.

    Some manufacturers have shown that customer demand is stronger, so the price of products can be raised.

      

    As demand rebounded, the contraction trend of procurement slowed down.

    In March, manufacturers continued to reduce purchases, but the slowdown slowed to the lowest level in nearly three months.

    At the same time, manufacturers use inventory delivery, resulting in finished goods inventory continued to decline, but the decline was narrowed significantly, procurement inventory appeared the first expansion in four months.

    Some of the respondents said that customer demand is showing signs of strength, so increasing inventories.

      

    In March, optimism rose to its highest level in ten months.

    Optimistic expectations in the industry are generally related to market expectations, new product launches, capacity expansion and other factors.

    Many manufacturers expect the overall market to improve further, but the industry's confidence level is still below the long-term average.

      

    Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that the industry boom was restored in March, and the employment situation was greatly improved thanks to the relaxation of the financing environment, the policy of private enterprises and the positive progress of Sino US trade negotiations.

         

         

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