China’s manufacturing sector continued its steady growth in April, with the official Purchasing Managers’ Index (PMI) registering a reading of 50.4. While slightly down from March’s 50.8, the PMI remained above the critical 50-point mark that separates expansion from contraction, indicating ongoing recovery in industrial activity as the second quarter unfolds.
Data released by the National Bureau of Statistics on Tuesday highlighted key indicators of the manufacturing sector’s health. The production index rose to 52.9, reflecting a notable acceleration in enterprise production. Market demand also showed positive signs, with the new orders index standing at 51.1, signaling continued expansion.
New growth drivers are emerging within the sector. The PMIs for equipment manufacturing and high-tech manufacturing registered robust readings of 51.3 and 53.0, respectively. These figures suggest that structural adjustments and the formation of new growth drivers are picking up pace.
“While the macroeconomic operation maintains a trend of recovery and improvement, the optimization of structure, structural adjustment, and the formation of new growth drivers are accelerating,” said Cai Jin, vice president of the China Federation of Logistics & Purchasing, as reported by CCTV.
In the services and construction sectors, China’s non-manufacturing PMI stood at 51.2 in April, down from March’s 53.0 but still in expansion territory.
The Caixin/S&P Global manufacturing PMI, which focuses more on small and medium-sized private manufacturing enterprises, echoed the positive trend. It rose to 51.4 in April from 51.1 in March, further underscoring the sector’s continued growth.
The official PMI provides a comprehensive view of the manufacturing sector, including large state-owned enterprises, while the Caixin/S&P PMI offers insights into the performance of smaller private firms. Together, these indices suggest that China’s manufacturing sector is on a steady path of recovery, bolstered by rising production and emerging high-tech industries.
Reference(s):
cgtn.com
