China manufacturing activity edges past estimates in April- PMI

Investing.com-- Chinese manufacturing activity grew slightly more than expected in April, as the sector continued to benefit from stimulus measures from Beijing, although the reading still slowed from the prior month amid sustained headwinds for the Chinese economy. 

The official manufacturing purchasing managers index (PMI) read 50.4 in April, data from the National Bureau of Statistics showed on Tuesday. The reading was slightly above expectations of 50.3 and slowed from the 50.8 in March. 

A reading above 50 signals expansion. While April’s PMI remained in expansion territory, its slowing from the prior month indicated that the Chinese economy may be easing after a strong first quarter of 2024. 

Non-manufacturing PMI further pointed to slowing growth. The index read 51.2 in April, missing expectations of 52.2 and slowing substantially from the 53.0 seen in the prior month. 

This saw the Chinese composite PMI fall to 51.7 in April from 52.7 in March. 

Beijing continued to roll out more monetary stimulus measures, while also loosening restrictions on investment, particularly in the beleaguered property sector, in order to help support the economy. 

But China was still struggling with a sustained deflationary trend, as consumer spending- a key driver of the economy- failed to pick up despite increased stimulus. Demand for Chinese exports also remained languid, further pressuring local business output.

Private manufacturing PMI data released on Tuesday painted a slightly more optimistic picture of the sector. The Caixin Manufacturing PMI rose 51.4 in April, more than expectations of 51.0 and the 51.1 seen in the prior month.

But the Caixin data differs from the official reading in that it focuses more on smaller, export-oriented private business. The official PMI focuses on a bigger pool of larger state-owned companies.