In recent months, the manufacturing sector in China has shown significant growth, with new export orders increasing at the fastest pace in 3.5 years. This surge was driven by a range of products, including cars, machinery, and electrical equipment. The Caixin/S&P purchasing managers index (PMI) survey also indicated a rapid increase in output and new orders for manufacturing enterprises in April.
According to Wang Zhe, a senior economist at Caixin Insight Group, the manufacturing sector continues to improve, with both supply and demand expanding rapidly. Transportation and logistics systems are operating smoothly, contributing to the overall positive outlook for the sector. The official PMI from China’s National Bureau of Statistics also showed growth in April, with the index at 50.4 points compared to 50.8 in March.
While rising input costs and competition are challenges for manufacturers, they continue to face these obstacles despite increased purchases and inventory levels reflecting positive sentiment among businesses. Despite this, the labor market has not seen improvement as ongoing decreases in job numbers are attributed to restructuring efforts and resignations.
