China's Factory Activity Surges to 5-Year High in February on Robust Demand

• China's Manufacturing PMI, compiled by S&P Global, rose to 52.1 in February, marking its highest level in over five years.
• Robust demand drove the expansion, with new orders rising for the ninth consecutive month and export orders seeing their most pronounced pace since September 2020.
• Output growth reached its strongest level since June 2024, and manufacturers' confidence hit an 11-month high.
• Input costs, particularly metal prices, accelerated to their highest since June 2022, leading manufacturers to raise output prices.
• China is set to unveil 2026 economic targets and the next Five-Year Plan report at the upcoming parliamentary meeting.