China’s official manufacturing gauge for April indicates moderate recovery, but analysts flag deepening systemic risks
National Bureau of Statistics’ release shows official purchasing managers index for April holds above the key 50-level indicating expansion
China’s official manufacturing purchasing managers index (PMI) in April indicated a moderate recovery of the domestic economy driven by government stimulus, although confidence among large manufacturers remains weak, analysts said.
The official manufacturing PMI in April came in at 50.1 on a 100-point scale over the weekend, according to the National Bureau of Statistics, missing market consensus of 50.3 per cent and down from 50.2 per cent in March.
“Overall demand remains on the expansionary path,” CICC analysts Liang Hong and Eva Yi wrote in a note. Most sub-indexes tracked by the PMI retreated after the sharp cyclical rebound in March, implying “normalising but upbeat” growth momentum, they wrote.
Domestic manufacturing demand remains solid, as the New Orders Index printed at 51 per cent, compared with 51.4 per cent in March.
Meanwhile, the New Export Orders Index, printed at 50.1 per cent, down from 50.2 per cent in March, was higher than the average of 47 per cent during the second half last year.