China manufacturing PMI hits lowest level since post-Covid reopening, official data shows

China’s official manufacturing purchasing managers’ index (PMI) fell below 50-point mark separating monthly expansion and contraction to 49.2 in April

Senior economist with the bureau says fall mainly due to lack of market demand and high base effect from rapid recovery in the first quarter

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China’s special equipment and electrical and mechanical equipment sectors have continued to expand, according to the National Bureau of Statistics. Photo: Xinhua

Published: 12:10pm, 30 Apr 2023Updated: 9:31am, 2 May 2023

China’s manufacturing activity unexpectedly contracted in April while expansion of services slowed, in the latest evidence of the challenges facing Beijing amid an uneven post-Covid economic recovery.

The official manufacturing purchasing managers’ index (PMI) fell below the 50-point mark separating monthly expansion and contraction to 49.2 in April from 51.9 in March, hitting the lowest level since China’s post-pandemic reopening late last year, according to the National Bureau of Statistics on Sunday.

It underperformed the market estimate of 51.5, which came after China posted a surprise economic growth of 4.5 per cent in the first quarter.

A subindex to measure new orders dipped to 48.8 from 53.6, indicating decline in market demand and acting as a major contributor to the fall in the headline indicator.

Another index to gauge new export orders also fell to contraction range – to 47.6 from last month’s 50.4 – its lowest level in three months.

The fall in April was mainly due to “insufficient market demand and the high base effect of a rapid recovery in manufacturing in the first quarter”, according to Zhao Qinghe, a senior economist with the statistical bureau.

Production in the chemical fibre, ferrous metal mining and processing sectors have slowed due to weak market demand, while special equipment and electrical and mechanical equipment sectors have continued to expand, the bureau said in a separate statement.