Goldman Sachs economists said China’s March factory activity improvement may not signal a firm recovery, as the data could be distorted by the later-than-usual Lunar New Year. While official PMIs showed stronger manufacturing and nonmanufacturing activity in March, they should be read alongside weaker January–February figures. Taken together, the data point to slightly better manufacturing, broadly flat services, and continued weakness in construction in 1Q, Goldman said.

2026-03-31

Goldman Sachs economists said China’s March factory activity improvement may not signal a firm recovery, as the data could be distorted by the later-than-usual Lunar New Year. While official PMIs showed stronger manufacturing and nonmanufacturing activity in March, they should be read alongside weaker January–February figures. Taken together, the data point to slightly better manufacturing, broadly flat services, and continued weakness in construction in 1Q, Goldman said.