China's manufacturing PMI down in April

Beijing: The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 47.4 in April, down from 49.5 in March, data from the National Bureau of Statistics (NBS) showed on Saturday.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The resurgence of domestic COVID-19 infections has weighed on China’s factory activities and market demand, NBS senior statistician Zhao Qinghe said.

The sub-index for production stood at 44.4 in April, down 5.1 points from the previous month, and the sub-index for new orders stood at 42.6, down 6.2 points from March.

Enterprises have reported rising difficulties in logistics and transportation, supply of vital raw materials and key parts, sales, and inventory backlogs.

In April, the sub-index measuring supplier delivery time continued to decline, and the sub-index tracking the finished product inventory rose to a high level, Zhao said.

The purchase price index for primary raw materials stood at 64.2, 1.9 points lower than the previous month, but still running at a relatively high level.

Despite the lackluster data, the fundamentals of China’s long-term economic improvement have not changed, and the related departments have further coordinated COVID-19 prevention and the smooth supply of goods, said Zhao.

The country has intensified policies to help enterprises tide over difficulties, and this will help boost business confidence, he said.

The PMI for China’s non-manufacturing sector came in at 41.9 in April, down from 48.4 in March. The COVID-19 resurgences have impacted the services sector most in April, as 19 of the 21 segments in the sector surveyed were in the contraction range, Zhao said.

The sub-index for the services sector stood at 40 in April, down 6.7 points from that in March, indicating a downward trend in the sector.

The construction sector has continued expansion, but the sub-index for the sector was down 5.4 points from March to 52.7 in April.