By Ouyang Jie, People’s Daily
A series of leading economic indicators of March have recently been released, revealing encouraging signs of momentum in the Chinese economy.
The purchasing managers’ index (PMI) for the manufacturing sector stood at 50.5 percent, up 0.3 percentage points from the previous month and remaining in expansion territory for a second consecutive month.
The logistics performance index reached 51.5 percent, up 2.2 percentage points, signaling accelerated recovery across supply chains and steady growth in industrial demand.
Meanwhile, the e-commerce logistics index rebounded significantly to 110 points, indicating greater activity and vibrancy in the e-commerce sector.
As leading indicators often serve as a barometer of macroeconomic performance, the consistent expansion in March reflects multiple positive trends in China’s economy.
Since the beginning of the year, China’s economy has maintained stable growth, with stronger innovation momentum and emerging growth drivers, laying a solid foundation for steady growth throughout the year.
The resilience of China’s economy is evident in the PMI sub-indices. The new orders index in the manufacturing sector rose to 51.8 percent in March, staying above 51 percent for two straight months. Stronger demand has boosted production activities, with the production index reaching 52.6%—also above 52 percent for two consecutive months.
The simultaneous recovery in both supply and demand has not only lifted market confidence but also stabilized business expectations. In March, the index for business activity expectations in manufacturing reached 53.8 percent, maintaining a relatively high level for six consecutive months.
The new export orders index in the manufacturing sector also rose for the second month in a row, reflecting the resilience and vitality of China’s foreign trade even amid rising unilateralism and protectionism.
In the first quarter, Shenzhen airport handled 240,000 tons of foreign trade cargo, up 22.6 percent year on year; Yantai Port in east China’s Shandong province shipped 4.566 million tons of general cargo via liner services, an 84.7 percent increase; customs officers at Chengdu Shuangliu International Airport in southwest China’s Sichuan province processed 62,000 tons of inbound and outbound freight, up 26.7 percent.
The growth in leading economic indicators over the past two months indicates China’s innovation vitality.
Chinese new energy vehicle manufacturer BYD recently unveiled a new battery and charging system – dubbed the Super e-Platform – that can charge at peak speeds of 1,000kW, providing around 400 kilometers of range in just five minutes.. In Guangzhou, Guangdong province, the world’s first electronic paper display screen measuring 30 inches and above was launched – ushering in a new era as large-sized color electronic paper transitions from static to dynamic display..Meanwhile, the debut of the “Tongze,” a ultra-large-diameter slurry tunnel boring machine, marked another breakthrough in China’s high-end underground engineering equipment.
These advancements highlight the growth of new quality productive forces driving economic transformation. In March, the new orders index for the equipment manufacturing sector hit its highest level since April 2023.
Experts noted that China’s stable growth and innovation capacity are injecting fresh momentum and confidence into both regional and global economies – establishing the country as a key engine for worldwide growth. Increasingly, “innovation” is becoming the defining feature of China’s manufacturing sector.
Policy measures are also yielding tangible results. For instance, China issued ultra-long term special treasury bonds totaling 300 billion yuan ($41.4 billion) to support the expansion of the consumer goods trade-in program in 2025; it has planned to raise 520 billion yuan to bolster capital at major state-owned commercial banks, enhancing their capacity to serve the real economy; new policies have been launched to stabilize foreign trade and investment, as well as to further high-level opening-up..
In the consumer sector, initiatives such as trade-in programs and stimulus packages are unlocking latent demand and diversifying consumption scenarios.
New business models like instant retail and livestream e-commerce are booming. Instant delivery has shifted from an “emergency” option to a daily habit, leading to a surge in order volumes and a noticeable rise in the e-commerce logistics index. This surge is further accelerating new manufacturing orders.
