Caixin:

Underpinning the latest acceleration in manufacturing sector growth was better demand conditions.

Incoming new orders expanded at the fastest pace in over a year, supported by improvements in underlying demand conditions and marketing efforts from manufacturers.

Additionally, new orders from abroad expanded at the fastest pace since December 2020. Global market demand improved at the start of the second quarter.

In turn, Chinese manufacturers raised their production levels at the fastest pace since May 2023, though that still resulted in additional backlog accumulation.

Sub-sector data revealed that the investment goods sector recorded the fastest growth across the measures of new orders, output, and backlogs.

Sentiment among Chinese manufacturers remained positive at the start of the second quarter with firms staying hopeful that sales can rise as economic conditions improve. That said, the level of confidence eased from March to a four-month low amidst concerns over rising costs and increased competition.