Official data: China’s manufacturing activity shrank unexpectedly in April
The Chinese economy gained considerable traction during the first quarter as the gross domestic product grew by 4.5% thanks to China’s services sector recording its highest level in over a decade in March
China’s manufacturing activity dipped beyond expectations in April 2023, according to data from the National Bureau of Statistics on the back of the persistently weak overseas demand and lethargic property sector.
The official manufacturing purchasing managers’ index (PMI) concluded at 49.2, dropping from 51.9 in March, against the 51.4 expectations set by economists in a Reuters poll. This marks the first contraction since December 2022 when the manufacturing PMI was at 47.
The Chinese economy gained considerable traction during the first quarter as the gross domestic product grew by 4.5% thanks to China’s services sector recording its highest level in over a decade in March, but factory output remained wane on persistently slow global growth.
A sub-index data showed that new export orders descended from 50.4 in March to 47.6 in April, clearly highlighting the frail overseas demand conditions.
The non-manufacturing index, which consists of service and construction activities dropped to 56.4 from 58.2 in March.
Regarding the property sector, confidence remains brittle as continuous issues such as debt defaults and stalled construction of housing projects have derailed growth in the sector.