China's manufacturing sector maintained its growth trajectory in April, although the pace of expansion showed signs of slowing, according to the latest data from the National Bureau of Statistics. The official manufacturing purchasing managers index (PMI) dipped slightly to 50.4 in April from 50.8 in March, still surpassing economist expectations of 50.2 from a WSJ poll. A PMI above 50 signals an expansion in manufacturing activity.
A parallel PMI from Caixin Media Co. and S&P Global, which focuses more on private and export-oriented firms, also indicated ongoing growth, rising to 51.4 in April from 51.1 in March. This marks the highest level since February 2023 and reflects continued economic improvement.
Despite these positive signs, the broader economic landscape presents challenges, including a persisting downturn in the property sector and calls for stronger policy measures to support recovery. Property investment notably declined by 9.5% in the first quarter of the year, exacerbating concerns about the health of this crucial economic segment.
The data also highlighted mixed signals in other areas of manufacturing: production increased from March, but there was a decrease in new orders and export orders, though they remained in expansion territory. Employment figures within the manufacturing sector also showed a decline, indicating cautious hiring practices.
China's official nonmanufacturing PMI, which includes services and construction, declined to 51.2 in April from 53.0 in March. While the services activity index fell, it remained positive, and the construction activity index actually saw an increase.
Beijing continues to channel investment into manufacturing, particularly in high-tech sectors such as electric vehicles and renewable energy, which has spurred growth but also raised concerns about potential trade tensions due to an influx of cheaper Chinese products in global markets.
