A staffer works in a textile factory in Bozhou, East China's Anhui Province on October 12, 2023. The efficiency of manufacturing and industrial chain coordination is significantly improving, bringing more competitive advantages to enterprises. Photo: cnsphoto

The private Caixin Manufacturing Purchasing Managers' Index (PMI) reached 50.9 in January, the same as the previous month, standing at the expansion territory for three consecutive months.

China's manufacturing production and business activity experienced the fastest growth in the past one and half years, with those surveyed noting the main driving forces include stable market conditions andsales growth, according to the private survey.

Overseas demand picked up slightly in January, with new export orders rising for the first time in seven months. Surveyed companies reported that the largest output increase was in investment-oriented products, the survey said.

China's manufacturing sector has seen continuous recovery thanks to quicker logistics and improved market supply, the Caixin's report said, as market supply and demand both returned to expansion territory.

Caixin PMI largely reflects business activity of privately-run small and medium-size enterprises in China.. 

The official manufacturing PMI, reported by the National Bureau of Statistics, came in at 49.2 on Wednesday, while the non-manufacturing PMI stood at 50.7, recording an increase of 0.2 points and 0.3 points respectively from December. The composite PMI, a weighted average of manufacturing and service PMI, rose to 50.9 percent, up by 0.6 from the previous month.

Business confidence has also increased. Zhou Maohua, a macroeconomic analyst at Everbright Bank, told the Global Times on Wednesday that, from the beginning of 2024, domestic demand is seeing a stable recovery and the supply structure of the sector continues to improve, which will lead to an overall improvement for the country's manufacturing sector. 

However, overall market sales growth has slowed, with the growth rate falling to the lowest level in October 2023, the Caixin report said, adding cost reduction and efficiency improvement will be the focus of Chinese enterprises this year.

The survey also said the production index, a sub-index of the manufacturing PMI, rose to a nearly eight-month high in January, indicating optimism from many private entities.