China's manufacturing Purchasing Managers' Index (PMI) registered 49.0% in February, a decline of 0.3 percentage points from the previous month, according to data released on March 4.
"February's manufacturing PMI of 49.0% indicates a lower level of business activity compared to January. Historically, PMI figures for the month containing the Spring Festival often show some fluctuations. This year, the extended holiday period, which fell entirely in mid-to-late February, impacted corporate production and operations, leading to an overall decline in manufacturing market activity," explained a chief statistician.
Analysis shows the production index and new orders index stood at 49.6% and 48.6% respectively, down by 1.0 and 0.6 percentage points from the prior month, indicating a slowdown in manufacturing output and market demand. By sector, industries such as agricultural and food processing, and computer and communication electronics equipment maintained production and new orders indices above the 50-point threshold, signaling continued expansion in production and demand. Conversely, sectors including textiles, apparel, and automobiles saw both indices remain below the critical point, reflecting weaker market activity.
The data revealed that large enterprises recorded a PMI of 51.5%, up 1.2 percentage points from January, indicating sustained expansion in their operations. Medium and small enterprises, more significantly affected by the holiday, posted PMI readings of 47.5% and 44.8% respectively, down 1.2 and 2.6 percentage points, indicating a decline in business confidence.
Furthermore, high-tech manufacturing continued to demonstrate growth momentum. The PMI for high-tech manufacturing was 51.5%, remaining in expansion territory and significantly above the overall manufacturing average, pointing to favorable development in related industries. The consumer goods industry PMI rose to 48.8%, up 0.5 percentage points, showing a recovery in activity. Meanwhile, the equipment manufacturing and high-energy-consumption industries recorded PMIs of 49.8% and 47.8% respectively, down 0.3 and 0.1 percentage points, indicating a moderation in business conditions.
"The production and business activity expectation index rose to 53.2%, an increase of 0.6 percentage points, suggesting manufacturing firms have growing confidence in post-holiday market development. In sectors such as general equipment, and railway, ship, aerospace equipment, the expectations index remained in a high景气区间 above 56.0%, indicating greater optimism among related enterprises about near-term industry prospects," the statistician added.