China factory activity returns to growth despite Iran war disruption
China's factory activity expanded for the first time this year in March, despite higher energy prices and disruptions caused by the escalating conflict in the Middle East. The official manufacturing purchasing managers' index reached 50.4, exceeding the median estimate of economists surveyed by Bloomberg.
China's factory activity has returned to growth, with the official manufacturing purchasing managers' index reaching 50.4 in March. This is the first time this year that factory activity has expanded. The growth is attributed to increased government spending and strong global demand. However, the ongoing conflict in the Middle East has led to higher energy prices, affecting Chinese factories that rely on crude or oil-derived products. China's non-manufacturing activity also grew in March, rising to 50.1. The country remains vulnerable to global economic shocks, but its strategic oil reserves and push into renewable energy are helping to cushion the impact.
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