BEIJING: China’s manufacturing activity unexpectedly shrank in April, official data showed on Sunday (Apr 30), raising pressure on policymakers seeking to boost an economy struggling for a post-COVID lift-off amid subdued global demand and persistent property weakness.
The official manufacturing purchasing managers’ index (PMI) was 49.2, down from 51.9 in March, according to data from the National Bureau of Statistics, below the 50-point mark that separates expansion and contraction in activity on a monthly basis.
That missed expectations of 51.4 tipped by economists in a Reuters poll, and marked the first contraction since December last year, when the official manufacturing PMI was at 47.0.
The world’s second-biggest
economy grew faster than expected in the first quarter thanks to robust services consumption, but factory output has lagged amid weak global growth. Slowing prices and surging bank savings are raising doubts about demand.
China’s economy grew at a faster-than-expected pace in the first quarter thanks to robust services consumption, but factory output has lagged amid weak global growth. Slowing prices and surging bank savings are raising
doubts about demand.
The Politburo, a top
decision-making body of the ruling Communist Party, on Friday stressed that restoring and expanding demand is the key to a durable recovery and cautioned the current improvement is mainly restorative “with weak momentum and insufficient demand”.
“A lack of market demand and the high-base effect from the quick manufacturing recovery in the first quarter” were among factors that led to the contraction in April, said senior NBS statistician Zhao Qinghe.
New export orders nudged down to 47.6 from 50.4 in March, the PMI showed.
The manufacturing sector, which provides jobs to about 18 per cent of those employed nationwide, remains under pressure due to slack global demand. Some exporters told Reuters at the country’s biggest trade fair they have frozen investments and some cut labour costs in response.
Source: Reuters
