China's manufacturing activity contracts in Apr 2023: NBS

02 May '23

1 min read

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Insights

China's manufacturing sector contracted for the first time in four months with the PMI dropping to 49.2 in April, below the 50-point mark indicating contraction.
Insufficient market demand and high comparison base in Q1 led to the decline.
The country's non-manufacturing sector grew for the fourth consecutive month with a PMI of 56.4 in April.

China’s non-manufacturing activity grew for the fourth consecutive month in April, while its manufacturing sector contracted for the first time in four months, as per the National Bureau of Statistics (NBS). The purchasing managers’ index (PMI) for China’s manufacturing sector dropped to 49.2 in April, down from 51.9 in March, below the 50-point mark that separates growth from contraction.

The decline in the manufacturing PMI can be attributed to insufficient market demand and a high comparison base in the first quarter due to a rapid recovery in the manufacturing sector, local media reports said quoting Zhao Qinghe, a senior NBS statistician.

Upon further analysis, it was found that the production index and new orders index attained values of 50.2 and 48.8, correspondingly. In terms of PMIs, equipment manufacturing, consumer products, and high-tech manufacturing obtained scores of 50.1, 49.8, and 49.3, sequentially.

Despite the drop in the manufacturing PMI, market sentiment remains stable, as the sub-reading for business expectations stood at 54.7, said Zhao. The PMI for China’s non-manufacturing sector stood at 56.4 in April, down from 58.2 in March. The official composite PMI, which accounts for both manufacturing and non-manufacturing activities, registered at 54.4 in April, down from 57 in March.

Fibre2Fashion News Desk (NB)

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