Official Data: China’s manufacturing activities slumps to 16-month low in April
Economists warn that macroeconomic indicators in both China and the United States are likely to deteriorate further in the second quarter
China’s manufacturing activity fell back into contraction in April, hitting its lowest level since December 2023, as the intensifying trade dispute with the United States continues to weigh heavily on sentiment. The latest data highlights persistent weakness in domestic demand, with factory owners struggling to offset declining overseas orders – a development that is likely to fuel renewed calls for policy stimulus.
The official manufacturing Purchasing Managers’ Index (PMI), published by the National Bureau of Statistics (NBS), dropped to 49.0 in April from 50.5 in March, falling below the 50-point mark that separates expansion from contraction. This marks the lowest reading in 16 months.
Economists warn that macroeconomic indicators in both China and the United States are likely to deteriorate further in the second quarter, as escalating trade tensions and policy uncertainty prompt companies to delay investment and operational decisions.
A breakdown of the NBS data shows that the subindex for new orders fell sharply to 49.2 in April from 51.8 in March, underscoring subdued domestic demand. Meanwhile, the subindex for new export orders dropped even further, to 44.7 from 49.0, reflecting mounting external pressures on Chinese manufacturers.
The non-manufacturing PMI – which tracks activity in the services and construction sectors – also slowed, falling to 50.4 after sustained growth earlier in the year. Within that, the construction subindex declined to 51.9, down from 53.4 in March.