Chinese manufacturing sector PMI slips again in April
Manufacturing activity in China fell more quickly than expected in April, according to a widely followed survey, but some economists pointed out the figures were in fact not as weak as they might appear at first glance.
The HSBC/Markit Chinese manufacturing sector purchasing managers´ index (PMI) fell to a reading of 49.2 from a print of 49.6 in the month before. Any reading below 50 is indicative of successively quicker paces of contraction.
Economists had been expecting a reading of 49.6.
Nonetheless, economists at Capital Economics pointed out that “activity has eased somewhat going into Q2 but is not substantially weaker than over the past six months. This time last year, the index was lower, at 48.1.”
The decline in a sub-index of employment witnessed in March moderated somewhat and export orders increased for the first time in three months.
On the other hand, a sub-index which tracks new orders declined to a one-year low of 49.2 from March´s 49.8. The subindices linked to input and output prices dropped lower still, reflecting an acceleration in the rate of deflation.
“We don´t think today´s PMI reading necesarily presages a sharp slowdown this quarter,” Capital Economics added.