City skyline in China

China PMI April 2021

China: Manufacturing and non-manufacturing PMIs pull back in April

The manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell from 51.9% in March to 51.1% in April, below the 51.7% expected by market analysts. As a result, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector. The reading was driven by slower growth in output and new orders. The PMI fell for large- and medium-sized firms, but rose for small firms. In contrast, the Caixin manufacturing PMI rose in April.

Looking at the non-manufacturing sector, the NBS’ PMI stood at 54.9%, down from 56.3% in March, amid weaker business activity and new orders growth.

Regarding April’s reading, Ho Woei Chen, economist at United Overseas Bank, commented:

“We think that the larger-than-expected drop in the CFLP PMIs likely indicated a moderation in expectations during April following the surge in March, when both sets of PMIs rebounded sharply towards their November peaks. Factors such as supply bottlenecks especially in the electronics industry as well as higher transportation costs may have weighed on the manufacturing outlook while services could be affected by expectation of slower credit growth ahead. […] Importantly, the CFLP manufacturing and non-manufacturing PMIs have continued to remain in expansion since March 2020 while the Caixin manufacturing PMI has stayed in expansion since May 2020. This suggests that the outlook is still positive despite the moderation in the official PMIs.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest