China’s factory activity expanded at its fastest pace in three months to 50.8 in February, according to a private-sector survey. The seasonally adjusted Caixin/S&P Global manufacturing purchasing managers’ index beat expectations and accelerated from January’s 50.1.
The growth was driven by millions of migrant workers returning to work after the Lunar New Year holiday. The official manufacturing PMI also showed that China’s factory activity expanded at its fastest pace since November, with a reading of 50.2 in February.
Economists warn that fresh US tariffs could pressure China’s manufacturing activity and dent exports, which are key drivers of growth this year. New export orders grew at the fastest rate since last April, driven by “demand strengthened from foreign clients.”
The stronger external demand for Chinese manufactured goods may be due to US importers front-running potential tariffs. US President Donald Trump announced additional 10% tariffs on Chinese goods, scheduled to take effect on March 4.
China’s leadership is expected to unveil economic targets and fresh policy support at the upcoming parliamentary meetings. However, a patchy recovery is forecasted, with domestic demand showing significant softening. Output prices at factories have remained under pressure, and employment in the manufacturing sector slumped to a near five-year low.
Source: https://www.cnbc.com/2025/03/03/china-february-caixin-pmi.html