China’s factory activity showed expansion in March, reversing two months of contraction. This growth occurred despite higher energy prices and disruptions from the conflict in the Middle East.
A private survey indicated a slowdown for export-oriented firms, with rising costs impacting production. While an official gauge showed overall manufacturing improvement, the private measure eased from a five-year high, though remaining in expansionary territory.
Factories relying on crude oil or oil-derived products are facing increasing raw material costs, creating challenges for some businesses. Rising price and supply pressures were noted alongside the expansion.