31.03.202601:30:00UTC+00China’s Services Sector Edges Back Into Expansion as Non-Manufacturing PMI Hits 50.1 in March

China’s non-manufacturing sector moved back into expansionary territory in March 2026, with the Non-Manufacturing Purchasing Managers’ Index (PMI) rising to 50.1 from 49.5 in February. The latest reading, updated on 31 March 2026, suggests that activity in services and other non-manufacturing industries has stabilized after briefly dipping into contraction.

The shift from 49.5 to 50.1 marks a modest but symbolically important improvement, as a PMI reading above 50 indicates expansion while a reading below 50 points to contraction. The February 2026 figure of 49.5 had raised concerns about weakening momentum in China’s broader economy, given the central role of services and related sectors in the country’s growth model.

While the March data do not signal a strong rebound, the return above the 50 threshold may help ease immediate worries about a deeper slowdown in non-manufacturing activity. Investors and policymakers are likely to watch upcoming releases closely to see whether March’s stabilization can be sustained in the coming months.