In March, Caixin China'S Manufacturing PMI Rose To 50.1.

As the resumption of labor resumed, the purchasing managers' index (PMI) of Caixin, which was released in April 1st, was 50.1, 9.8 percentage points higher than the historical low of February, indicating that the boom of the manufacturing industry basically stabilized, but the improvement rate is still relatively limited.

This trend is consistent with the PMI of the National Bureau of statistics. The PMI released by the National Bureau of statistics in March was 52, up 16.3 percentage points from the previous month.

The output of manufacturing industry hit a record high in February, due to large-scale factory closings and limited travel restrictions. With the relaxation of some restrictions, output grew again in March. However, the new order index is still in the contraction range, though it has recovered significantly since last month. Many of the respondents said that the new crown epidemic situation has resulted in the delay or cancellation of orders. In addition, because of efforts to curb the epidemic around the world, the number of new export orders in March was also significantly reduced, but the decline was significantly slower than last month.

The employment index also rose significantly in the contraction area, and has returned to the central level before the epidemic. Enterprises reflect that the automatic turnover of employees and the compression costs of enterprises lead to the contraction of employment. Due to the reduction of production capacity in recent months, the pressure of production capacity continues to exist, and the backlog work index has dropped slightly from last month, still at a historical high.

In March, the supply chain of manufacturing industry is still tense. Enterprises reflect the shrinkage of suppliers and the shortage of raw materials, resulting in a further slowdown in the average supply speed of suppliers.

In March, the purchasing inventory index of manufacturing industry was restored in the contraction area, but it is still in the low position in recent years. Manufacturers reflect that due to shortage of raw materials, raw materials need to be used and inventory of raw materials has dropped significantly. Due to the difficulties in transportation of materials caused by epidemic prevention, the finished goods inventory index returned to the expansion area.

The purchase price of raw materials returned to the contraction area, but the decline was slight. Many companies say that the drop in costs is related to the weakening of global demand. Manufacturers also continue to lower the price of products to boost sales.

China's manufacturing industry is generally confident of production in the next 12 months, mainly due to the expectation that demand will rebound after the improvement of the epidemic situation. Optimism has dropped slightly in February, reaching a five year high.

Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that the manufacturing industry suffered double pressure in March. On the one hand, the resumption of labor and production is not enough; on the other hand, the deterioration of external demand and the domestic consumer demand have not yet started in large scale, resulting in relatively limited production expansion, and no obvious production compensation is seen. However, entrepreneurs' confidence is still relatively high, and employment absorption basically revert to the level before the epidemic, which has laid a good foundation for the rapid restoration of the economy after the outbreak.