Flash China Manufacturing PMI™ at 50.5 (51.6 in March). Two-month low.
Flash China Manufacturing Output Index at 51.1 (53.0 in March). Two-month low.
The HSBC Flash China Manufacturing PMI came in at a two-month low, but still managed to expand modestly in April, albeit at a much slower pace. However, new export orders contracted after a temporary rebound in March, suggesting external demand for China’s exporters remains weak. Weaker overall demand has also started to weigh on employment in the manufacturing sector.
Nomura’s Zhiwei Zhang points out that in the context of previous April results, it’s especially poor:
In the past seven years, the PMI in April has risen five times, fallen once and been flat once – on average, it rose by 1.2 percentage points (pp) from March to April. Excluding 2009 (an abnormal year when the RMB4trn fiscal stimulus pushed it up quickly), it rose by 0.5pp.