Manufacturing up again in April
Print Edition
CHINA’S manufacturing activity expanded for the second month in a row in April but at a slower pace, according to official figures released yesterday.
The purchasing managers’ index (PMI) came in at 50.1 in April, down from March’s 50.2 and barely above the 50-point line that separates expansion from contraction.
The figure was also below market forecasts of 50.3, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a report.
“The Chinese economy is stabilizing as the reading remained in positive territory in April despite falling slightly,” said Zhang Liqun, a researcher with the State Council’s Development Research Center.
Statistician Zhao Qinghe from the national statistics bureau said manufacturing activity maintained growth partly due to a recovering housing market and accelerated infrastructure construction.
In the first quarter of the year, fixed-asset investment rose 10.7 percent year on year, while real-estate spending added 6.2 percent, according to figures released earlier.
A sub-index measuring production for April fell 0.1 points month on month to 52.2, though improved on the 51.3 recorded for the first quarter, the report said.
The government’s “pro-growth measures and supply-side structural reforms” helped demand to rebound in April, Zhao said.
The government has cut interest rates, reduced taxes, cut overcapacity and initiated reforms in a bid to help the manufacturing sector weather the downturn.
The new orders sub-index fell 0.4 points from March to 51, the report said.
Prices of raw materials continued their upward trend last month, with the sub-index for purchasing prices rising to 57.6, its highest point for almost two years.
China’s economy continues to face downward pressures, but remains in positive territory, Zhao said.
Growth in domestic and foreign orders faded slightly, however, which suggests global headwinds might block further improvement in exports, he added.
Factories made workers redundant at a slightly faster pace in April, with the employment sub-index down 0.3 points to 47.8, the report said.
The job losses show that the pressure on employment is mounting, Zhao said.
Meanwhile, activity in China’s non-manufacturing sector remained strong, though grew at a slightly slower pace in April, falling 0.3 points from March to 53.5, the report said.
Behind the headline data, it was the construction component of the index that drove continued resilience with a reading of 59.4, while the services component was weaker at 52.5.
Early signs for last month were positive in that they showed a continued improvement in conditions, but uninspiring because the pace of improvement remained moderate, Bloomberg said in a research note.
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