China’s February factory activity expands at fastest pace in three months, private survey finds
Workers weld acid batteries at the Leoch International Technology Ltd. factory in Saltillo, Coahuila, Mexico, on Monday, Oct. 7, 2024.
Mauricio Palos | Bloomberg | Getty Images
China’s factory activity expanded its its fastest pace in three months to 50.8 in February, a private-sector survey showed on Monday, as millions of migrant workers returned to work after an extended Lunar New Year holiday.
The seasonally adjusted Caixin/S&P Global manufacturing purchasing managers index beat the Reuters poll forecast of 50.3, accelerating from 50.1 in January and 50.5 last December.
The private-sector manufacturing PMI has stayed above the 50 threshold that separates expansion from contraction since last October.
This private survey reading on Monday followed the official manufacturing PMI released on Saturday, which also showed that China’s February factory activity expanded at its fastest pace since November.
The official PMI rose to 50.2 in February from 49.1 in January, according to the National Bureau of Statistics. The non-manufacturing PMI, which includes services and construction, also climbed to 50.4 from 50.2 in January.
The figures came as economists flagged that fresh U.S. tariffs could pressure the country’s manufacturing activity and dent exports this year as exporters concerned about tariffs coming into effect had rushed to front-load their shipments.
U.S. President Donald Trump last week announced to impose additional 10% tariffs on Chinese goods — on top of the 10% he levied on China on Feb. 4.
Trump had threated 60% tariffs on China on his campaign trail.
The additional tariffs are scheduled to take effect on March 4, coinciding with a high-profile annual gathering in Beijing where Chinese authorities are expected to unveil economic targets and fresh policy support.
The leadership is expected to acknowledge a significant softening in domestic demand while revealing highly anticipated details on fiscal stimulus aimed at shoring up growth in the face of heightened trade tensions.
China’s commerce ministry urged the U.S. on Friday to resume negotiations as soon as possible, while warning of retaliation.
The world’s second-largest economy has seen sluggish growth amid tepid domestic demand and a prolonged real estate downturn, leaving exports as a key driver of growth.
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