China’s factory activity dipped in April on weak demand as bumpy post-Covid economic recovery continues
- Caixin/S&P Global manufacturing purchasing managers’ index (PMI) fell to 49.5 last month, down slightly from 50 in March
- Reading echoes a similarly disappointing official manufacturing PMI, which fell to 49.2 in April from 51.9 in March
China’s factory activity unexpectedly dipped in April, a private sector survey showed on Thursday, due to softer domestic demand and suggesting the manufacturing sector is losing momentum amid a bumpy post-coronavirus economic recovery.
The reading missed expectations of 50.3 in a Reuters poll and marked the first contraction since January when the “exit wave” from zero-Covid policies hit production lines. The 50-point index mark separates growth from contraction on a monthly basis.
This suggests that China’s economic recovery significantly slowed after Covid-19 infections peaked at the start of this year
Along with a subdued property market and a deep slump in industrial profits, analysts said the economy faces continued headwinds.
“This suggests that China’s economic recovery significantly slowed after Covid-19 infections peaked at the start of this year,” said Wang Zhe, economist at Caixin Insight Group.