Chinese industry contracted unexpectedly in April. The official Purchasing Managers’ Index (PMI) stood at 49.2 points, up from 51.9 in March, data from the National Bureau of Statistics (NBS) showed on Sunday.
This puts the value below the 50-point threshold, which signals growth. Thus, the expectations of the analysts surveyed by Reuters were missed. They had only expected an average of 51.4 points.
It was the first decline since December last year, when the official manufacturing PMI came in at 47.0 points.
China’s economy grew faster-than-expected in the first quarter thanks to robust service trade, but factory output lagged amid weak global growth.
Despite the recent pick-up in consumption, the non-manufacturing PMI eased slightly to 56.4 from 58.2 in March.
The official composite PMI, which includes both manufacturing and services, fell to 54.4 from 57.0 in March.
To boost trade and jobs, the cabinet this week unveiled plans to support auto exports, ease visas for foreign businessmen and give subsidies to companies that hire college graduates. (Reuters)
