China's private sector expanded at the slowest pace in six months in March as output in both manufacturing and services weakened from February, survey data from IHS Markit showed Thursday.
The Caixin composite output index fell to 52.1 in March from 52.6 in February. Nonetheless, a reading above 50 indicates expansion in the sector.
Likewise, the services Purchasing Managers' Index dropped to a 6-month low of 52.2 in March from 52.6 in February.
At the composite level, new orders grew at the slowest pace in four months, reflecting weaker increases in new work across both monitored sectors. Service providers registered the weakest increase in new business since last September. .The rate of job creation in the service sector was the weakest seen thus far this year and moderate overall. In contrast, manufacturing employment declined again, albeit at a marginal pace that was little changed from February.
At the composite level, unfinished workloads increased at the slowest pace in seven months, survey results showed.
On the price front, composite input prices rose at a rate that, though sharp, was the slowest since last October. Higher output charges for both manufactured goods and services were reported in March.
Chinese firms continued to express optimism towards the 12-month business outlook in March. Although the overall degree of positive sentiment edged down from February's recent peak, confidence remained at one of its highest levels seen in the past two years.
"Weaker increases in new business have clouded the economic outlook, and investors should watch closely for signs of a turning point in the second quarter," Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, said.
The government aims to achieve about 6.5 percent economic growth in 2017, after expanding 6.7 percent in 2016.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.