China’s manufacturing PMI falls at slower pace in April

According to data from China’s National Bureau of Statistics (NBS), the country’s purchasing managers index (PMI) declined to a reading of 50.1 in April from a reading of 50.2 in March. The April PMI also fell below market expectations, which called for an increase to a reading of 50.3. Manufacturing activity in China expanded for the second consecutive month in April. Any reading below 50 indicates a contraction while any reading above 50 represents an expansion.

The recovery was attributed to a stronger housing market and accelerated infrastructure construction. Data also showed that the output sub-index dropped to a reading of 52.2, slightly down from 52.3 a month earlier. Meanwhile, the sub-index for new orders fell by 0.4 points to 51% in April on a monthly basis. Fixed- asset investment increased by 10.7% on the year in the January-March period, while real estate investment rose by 6.2% compared with a year earlier.

However, China’s non-manufacturing PMI fell to a reading of 53.5 in April, down from March’s 53.8. NBS statistician Zhao Qinghe commented that despite staying in the positive zone, slowing domestic and external demand may affect China’s export activities negatively.