China’s Manufacturing Activity Continues to Recovery in April

China’s Purchasing Manager’s Index (PMI) in manufacturing declined to 51 points in April 2020 compared to 52 in March, according to data published by the National Bureau of Statistics.

The drop was lower than expected and indicates that the sector continues to expand, albeit at a slower pace. A figure above 50 indicates expansion, and below 50 – contraction.

Although the expansion of manufacturing activity continued, half of the components dropped further and remained in the contraction territory, suggesting the situation has worsened compared to March.

Deterioration is observed among components such as new export orders, producer and purchasing prices, backlog orders, imports and inventory, mainly driven by the strong external headwinds due to the COVID-19 pandemic spreading worldwide.

PMI in manufacturing declined to 51 points in April 2020 compared to 52 in March

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