China’s official PMI data for April showed the economy maintaining modest expansion, but with a clear divergence between sectors. PMI Manufacturing edged down slightly from 50.4 to 50.3, staying in expansion for a second month. PMI Non-Manufacturing dropped from 50.1 to 49.4, the lowest since January and slipping into contraction. PMI Composite also eased from 50.5 to 50.1, indicating overall growth is continuing but losing momentum.
NBS noted that within manufacturing, conditions remain relatively resilient. Output and new orders stayed in expansion territory, and firms’ willingness to purchase inputs improved, pointing to steady demand. Business expectations also strengthened, with confidence rising for a third consecutive month. However, this recovery is being accompanied by rising price pressures, as both input and output price indices remain elevated amid volatile commodity markets.
| Indicator | March | April | Change |
|---|---|---|---|
| PMI Manufacturing | 50.4 | 50.3 | ↓ -0.1 |
| PMI Non-Manufacturing | 50.1 | 49.4 | ↓ -0.7 |
| PMI Composite | 50.5 | 50.1 | ↓ -0.4 |
Private survey data painted a stronger picture. The RatingDog PMI Manufacturing rose from 50.8 to 52.2, the highest since late 2020, marking a fifth consecutive month of expansion. Strong demand, improved operations, and new product launches drove output and orders higher, while cost pressures intensified. Input prices rose at the fastest pace in over four years, with firms passing these costs through to customers via higher selling and export prices, highlighting a growing inflationary impulse within the manufacturing sector.
