(Il Sole 24 Ore Radiocor) - Milano, 1 apr - In March, China's purchasing managers' index for the manufacturing sector fell from February's recent peak of 52.1 to 50.8, indicating a slower overall expansion, albeit the second-strongest performance in the past six months, according to data released by S&P Global with its local partner Ratingdog.

A reading above 50 signals sector expansion, while one below a contraction.

"On a sub-index basis, the rate of expansion moderated from February's recent peak, but overall operating conditions continued to improve steadily. Demand and production maintained growth, with both new orders and output expanding for another month, albeit at slower rates. Employment rose for a third successive month, marking the longest period of job creation since mid-2021," said Yao Yu, founder at RatingDog.

"Notably, cost pressures intensified significantly. The rate of input price inflation accelerated to the highest since March 2022. Driven by this, output prices also increased at the sharpest pace in four years. Concurrently, supply chains faced notable disruptions, with suppliers' delivery times lengthening to the greatest extent since December 2022, posing challenges to operational efficiency.

"Regarding inventories, stocks of purchases rose slightly, while stocks of finished goods contracted marginally as firms continued to fulfil orders from existing holdings.

"Despite cost and supply chain pressures, manufacturers maintained an optimistic outlook for production over the coming year, with confidence linked to improved market demand, capacity investment, and supportive government policies.

"Overall, the manufacturing sector sustained a moderate expansion in March, the macro environment presents a more complex picture for the manufacturing sector. Domestically, the 2026 Government Work Report set a GDP growth target within a flexible range of 4.5% to 5%, largely in line with market expectations. This reflects a general policy stance of 'seeking progress while maintaining stability,' which is expected to provide moderate underpinning for manufacturing activity, albeit without implying significant stimulus.

Internationally, ongoing geopolitical conflicts continue to keep oil prices elevated and exacerbate volatility and cost pressures in key raw material markets. This imported inflationary factor is likely to remain a severe test for.

manufacturers' input costs in April."

(RADIOCOR) 01-04-26 08:24:05 (0143) 5 NNNN