China factory activity rebounds to a year-high on improving demand amid energy shocks

China’s official manufacturing PMI rose to 50.4 in March, the strongest in a year and signaling expansion on firmer demand and better export orders, even as a Middle East energy shock raises costs and growth risk. Output and new orders improved, while input costs surged, suggesting limited pricing power. Analysts forecast Q1 GDP above Beijing’s 4.5% target, but caution that the momentum may fade in the face of higher energy prices and global slowdown, prompting policymakers to lean on domestic demand and structural measures to cushion the oil shock.