China’s manufacturing contracts in April for 1st time in 2023
Beijing, Apr 30 (EFE).- China’s manufacturing activity contracted in April for the first time in 2023.
The purchasing manager’s index (PMI), an indicator of the manufacturing sector, stood at 49.2, below the 51.9 recorded in March and far below the experts’ predictions of 51.5, according to official data released by the National Bureau of Statistics (NBS) on Sunday.
A figure above 50 points represents growth in activity compared to the previous month and one below indicates contraction.
The NBS also released the PMI for the non-manufacturing sector, which measures activity in sectors such as construction and services.
The non-manufacturing PMI declined from 58.2 in March to 56.4.
NBS statistician Zhao Qinghe attributed the drop in the PMI in the fourth month of the year to insufficient market demand and a high comparison base in the first quarter due to a rapid recovery in the manufacturing sector after the end of the country’s strict “zero-Covid” policy.
The expert said that a large fluctuation in the prices of some bulk products caused the 4.5 and 3.7 point fall from March in the purchase price and ex-factory price indices of the main raw materials to 46.4 and 44.9 respectively.
The economic activity expectation index, which measures the confidence of non-manufacturing companies in the future development of their market, fell in April to 54.7, the lowest so far in 2023.
The PMI comprehensive production index, the combined analysis of manufacturing and non-manufacturing industries, fell 2.6 points from March to 54.4 in April. EFE