Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

China’s manufacturing hits 1-year peak as economic stimulus measures kick in

admin by admin
March 31, 2025
in Politics
0
China’s manufacturing hits 1-year peak as economic stimulus measures kick in
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

China’s manufacturing activity grew at its fastest pace in a year in March, reflecting the impact of Beijing’s stimulus measures on economic recovery.

However, escalating trade tensions with the US present challenges to sustained growth.

China’s manufacturing PMI rises

The official purchasing managers’ index (PMI) reached 50.5 in March, according to data from the National Bureau of Statistics.

This marks the highest level since March last year and aligns with economists’ expectations.

The index had moved above the 50-point threshold in February, rising to 50.2 from 49.1 in January, as production picked up after the Lunar New Year holiday.

The sub-index for production increased to 52.6, while new orders climbed to 51.8, indicating improvements in supply and demand.

However, the employment sub-index fell to 48.2, suggesting continued softness in the labour market.

Non-manufacturing activity, which includes services and construction, also showed improvement, with its PMI rising to 50.8, the highest in three months.

The employment sub-index for this sector declined to 45.8, reflecting labour market weakness across both services and construction.

The Caixin/S&P Global manufacturing PMI, a private-sector survey due on Tuesday, is projected to show a further increase in activity, rising to 51.1 from 50.8 in February.

China’s stimulus measures

Chinese policymakers have been ramping up monetary and fiscal stimulus to support a growth target of “around 5%” for the year while countering the impact of US tariffs.

Measures include an expanded consumer goods trade-in scheme to spur domestic demand and increased government debt issuance to address housing market and deflationary concerns.

China has raised its budget deficit target to around 4% of GDP for 2025, up from 3% last year, signaling a commitment to greater fiscal support.

The government has committed to additional fiscal stimulus, higher debt issuance, and further monetary easing while emphasizing domestic demand to mitigate the trade war’s impact.

In an effort to reassure foreign businesses amid US President Donald Trump’s tariff threats, Chinese President Xi Jinping met with multinational CEOs last week, urging them to safeguard global industry and supply chains.

Trump’s tariffs on China

Exports, which had been a bright spot for the economy, have slowed in the first two months of the year, growing at their weakest pace since April last year.

Analysts attribute this to exporters front-loading shipments ahead of anticipated tariffs.

President Trump has imposed an additional 20% tariff on Chinese goods over concerns related to illicit fentanyl trade, prompting Beijing to retaliate with tariffs of up to 15% on select US energy and agricultural products.

Further measures are expected, with Trump set to announce “reciprocal” tariffs on April 2, potentially increasing duties on Chinese imports.

He has also suggested he may reduce tariffs in exchange for Beijing’s support in facilitating the sale of TikTok in the US.

The post China’s manufacturing hits 1-year peak as economic stimulus measures kick in appeared first on Invezz

Previous Post

What CoreWeave IPO means for Goldman Sachs

Next Post

France fines Apple €150 million over app tracking violations, EU probes follow

admin

admin

Next Post
France fines Apple €150 million over app tracking violations, EU probes follow

France fines Apple €150 million over app tracking violations, EU probes follow

Trending News

US stocks could still rally 20% in the second half of 2025: find out more

US stocks could still rally 20% in the second half of 2025: find out more

May 31, 2025
Nintendo’s Switch 2 reveal falls flat, shares tumble 7%

Nintendo’s Switch 2 reveal falls flat, shares tumble 7%

January 17, 2025
Berenberg stays bullish on Diageo and Pernod Ricard despite looming 200% US tariffs: here’s why

Berenberg stays bullish on Diageo and Pernod Ricard despite looming 200% US tariffs: here’s why

April 2, 2025
Subscribe to Insightful Word


    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025

    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025

    Latest News

    • China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll
    • FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more
    • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.