China’s manufacturing activity cooled slightly in April, with the official Purchasing Managers’ Index (PMI) dipping to 49.0, down 1.5 points from March, according to data released Wednesday by the National Bureau of Statistics (NBS). The figure, which falls below the 50-point threshold separating expansion from contraction, reflects subdued demand and production adjustments in key sectors.
Analysts note that the contraction, while notable, remains moderate compared to previous economic slowdowns. “The April PMI reflects temporary pressures, including seasonal factors and global supply chain adjustments,” said Li Wei, a Beijing-based economist. “However, targeted policy support and stabilizing industrial output suggest underlying resilience.”
Despite the reading, optimism persists in areas like advanced manufacturing and green energy, buoyed by government pledges to boost infrastructure spending and high-tech innovation. Business groups also highlight strong export orders in electric vehicles and renewable energy equipment as growth drivers.
For investors, the PMI data underscores the importance of monitoring stimulus measures ahead of China’s key economic policy meeting in July. Meanwhile, markets in Southeast Asia and Europe may feel downstream effects from shifts in Chinese industrial demand.
