China's manufacturing sector expanded for a fourth consecutive month in March, although mounting cost pressures are beginning to weigh on momentum, according to a private-sector survey.
The S&P Global Purchasing Managers' Index (PMI) eased to 50.8 from 52.1 in February, remaining above the 50 threshold that separates growth from contraction but falling short of expectations.
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Production and new orders continued to rise, with output recording its fastest quarterly growth since late 2024. Export demand also increased, albeit at a slower pace than the previous month.
However, inflationary pressures intensified sharply. Input costs rose at their fastest rate since March 2022, while output prices increased at the quickest pace in four years, as manufacturers passed on higher expenses.
Analysts linked the surge in costs partly to global geopolitical tensions, which have contributed to imported inflation and supply chain disruptions. Supplier delivery times lengthened for the first time in five months, reflecting capacity constraints and volatile input prices.
Despite stronger employment and rising backlogs, business confidence softened as firms navigated tighter margins and longer lead times, highlighting growing challenges for the world's largest manufacturing base.
Source: www.reuters.com
