China’s manufacturing output grew at a slower pace in April as the economic recovery has started to moderate, according to Bloomberg.
- Manufacturing purchasing managers’ index (PMI) declined to 51.1 in April from March’s 51.9. This fell short of economists’ forecast of 51.8. A reading above 50 indicates expansion while below that indicates a contraction.
- The Non-manufacturing gauge likewise failed to meet expectations at 54.9 versus economists’ projection of 56.1.
- China’s Statistics Bureau Economist Zhao Qinghe said the figures indicate a steady recovery, but flagged concerns such as chip shortages, “poor” international logistics, shortages of containers, and rising freight rates.
- “A slowdown in manufacturing supply and demand and rising cost pressures are also issues,” the statistician said.
- New export orders eased to 50.4 from 51.2 in March; manufacturing employment at 49.6; non-manufacturing employment at 48.7.
- An analyst believes a rebound in the following month as domestic tourism is likely to rebound over the long holiday starting May 1.