China manufacturing PMI steady at 50.3 as exports rise

Factory activity settled higher than expected.

China’s official manufacturing Purchasing Managers’ Index (PMI) remained above 50 in April, settling at 50.3, down slightly from 50.4 in March but above the expectations of 50.1, according to Nomura.

Export new orders returned to expansion for the first time in two years, rising to 50.3 from 49.1, whilst new orders overall fell to 50.6 from 51.6, driven by weaker domestic demand. Production edged up to 51.5 from 51.4.

Nomura also said that non-manufacturing activity fell back to 49.4 in April from 50.1 in March, below expectations of 49.8.

The services index fell to 49.6 from 50.2, whilst construction dropped to 48.0 from 49.3, its lowest level since 2010.

According to the National Bureau of Statistics, weakness in wholesale and retail sales weighed on services, whilst construction employment has remained below 50 since end-2023.

The RatingDog manufacturing PMI rose to 52.2 in April from 50.8, above expectations of 51.0.

Output increased to 53.8 from 50.8, and new orders rose to 53.4 from 51.1.

Input and output price indices remained elevated at 63.7 and 55.1, respectively, compared with 63.9 and 55.4 in March.

By enterprise size, the PMI for large firms fell to 50.2 from 51.6, whilst medium-sized enterprises rose to 50.5 from 49.0, and small enterprises increased to 50.1 from 49.3.

The raw materials inventory index rose to 49.3 from 47.7. Employment increased to 48.8 from 48.6.