China’s factory activity continues expansion in April
China's manufacturing sector showed resilience in April. Official data released on Thursday by the National Bureau of Statistics and the China Federation of Logistics & Purchasing put the purchasing managers' index (PMI) for manufacturing at 50.3, down 0.1 points from March, suggesting that overall factory activity remained on stable footing, CGTN reports.
A PMI figure above the 50-mark indicates expansion while below 50 implies contraction.
Production momentum has continued into April. The production sub-index inched up to 51.5, a modest gain of 0.1 points, reflecting a continued pickup in manufacturing activity. Demand softened slightly but did not reverse course. The new orders index came in at 50.6, down 1 point from a month earlier, yet still in expansion territory, indicating that market demand continues to grow, albeit at a slower pace.
A closer look at the structure shows a shift in momentum. Smaller firms are catching up. The PMI for large enterprises slipped to 50.2, but remains above the expansion threshold. Meanwhile, small and medium-sized enterprises posted readings of 50.5 and 50.1, up by 1.5 and 0.8 points, respectively. The improvement suggests sentiment is stabilizing across a broader base of firms, not just at the top end.
External demand also showed signs of life. Supported by a mix of positive factors, the new export orders index returned to expansion territory in April, coming in at 50.3. This marks a notable turnaround after 23 consecutive months below the 50 mark.
The non-manufacturing PMI came in at 49.4 in April, down 0.7 points from the previous month.
Overall, the composite PMI output index stood at 50.1 in April, remaining above the threshold and indicating that business activities across Chinese enterprises continue to expand.
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