China's non-manufacturing sector expanded at an accelerated pace in March, with the business activity index, which reflects the sector's overall performance, seeing a month-on-month increase for two consecutive months, according to official data released by the National Bureau of Statistics (NBS) on Monday.
The continued growth of the sector indicated sustained expansion in non-manufacturing activities, and reflected positive signs of recovery in investment and consumption.
In March, China's non-manufacturing business activity index came in at 50.8, up by 0.4 percentage points from February, the official data show.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
Driven by favorable weather conditions and increasing investment-related demand, China's construction activities continued to pick up pace. In March, the business activity index for the construction industry rose by 0.7 percentage points over February to 53.4, marking the second consecutive month of growth and the highest level since June 2024.
"From the perspective of market expectations, the business activity expectation index for the construction industry has risen back above the 55 mark. Construction companies have shown increased confidence in the recent development of the industry," said Huo Lihui, head of the business climate survey division under the NBS's Service Survey Center.
Meanwhile, the service industry's business activity index reached 50.3 in March, up 0.3 percentage points month on month, indicating an overall increase in market vitality.
In March, both the retail sales activity index and the new orders index saw notable increases from the previous month, rising above 52.
In addition, the postal industry's business activity index rose above 55, suggesting that residents' willingness to spend both online and offline had strengthened.
In general, the non-manufacturing sector continued to expand in the first quarter of 2025, with positive signs of improvement in investment and consumption-related activities. Business expectations remain optimistic. In March, the non-manufacturing business activity expectation index rose to 57.2, up 0.6 percentage points from a month earlier.
China’s non-manufacturing sector expands at faster pace in March
China’s non-manufacturing sector expands at faster pace in March
China’s non-manufacturing sector expands at faster pace in March
