China: Manufacturing PMI remains in positive territory in April
May 1, 2016
The Purchasing Managers’ Index (PMI) in April inched down from March’s nine-month high of 50.2% to 50.1%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print undershot the 50.4% that market analysts had expected. As a result, the PMI is sitting just a notch above the 50%-threshold that separates contraction from expansion in the manufacturing sector.
April’s reading reflected a broad-based deterioration, with all the main components of the index losing ground compared to the previous month. All-important production and new orders gauges decreased in April, albeit they both remained in positive territory. Inventories and job conditions, however, dipped further into the red. Input prices—a reliable leading indicator for consumer prices—jumped to a nearly five-year high in April, thereby corroborating that deflationary risks have faded away. New export orders remained above the 50%-threshold, signaling that global demand is gradually improving.