Caixin: China’s manufacturing PMI falls in April

Caixin China General Manufacturing purchasing managers’ index (PMI), which focuses mainly on the small and medium-sized firms and coastal regions, came in at 49.5 in April from 50.0 in March, returning to contraction zone after two months.

Weaker consumer demand and decreasing total new orders were cited as the main reasons behind the deterioration.

“Manufacturing supply ticked up marginally, but demand contracted. While the economy continued to recover in the post-Covid era, the rebound was weaker than expected, with the subindex for output standing only slightly above 50. The recovery in demand was even worse. Domestic demand became a main drag, as the subindex for total new orders fell back into contraction. The gauge for new export orders remained stable as more Covid restrictions were lifted, but external demand remained limited,” Dr. Wang Zhe, Senior Economist at Caixin Insight Group, said.