China's manufacturing sector conditions improve further at Q1 2024 end

This was driven by greater inflows of new work, including from abroad.

Manufacturers in the country, in turn, raised production, while also increasing their purchasing levels amid improved optimism, S&P Global said in a release.

Overall optimism among Chinese manufacturers improved for a third straight month in March. Firms pinned hopes of rising manufacturing activity upon a better economic outlook. The level of business confidence was the highest seen since April 2023.

Input costs, meanwhile, fell for the first time in eight months, enabling Chinese manufacturers to further reduce selling prices to drive sales.

The headline seasonally-adjusted PMI, a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, rose to 51.1 in March, up from 50.9 in February, signalling a fifth successive monthly improvement in the health of the sector and at the most pronounced pace in 13 months.

Better demand conditions backed the latest advancement of manufacturing sector health. The rate at which new export orders rose, though modest, was the fastest in just over a year.

Employment levels declined again in March. Firms also opted to raise their holdings of raw materials and semi-finished items to meet current and future production needs.

In contrast, the level of post-production inventories fell for a second successive month as rising new orders led to increased outbound shipments of goods for the fulfilment of orders.

Fibre2Fashion News Desk (DS)