Positive PMI

China’s manufacturing sector expanded at a slightly slower pace in April than the previous month, but still maintained a “momentum of steady growth,” the latest data showed on April 30.

The purchasing managers’ index (PMI) for the sector came in at 51.4 in April, down from 51.5 in March, the National Bureau of Statistics (NBS) said. A reading above 50 indicates expansion, while a reading below reflects contraction.

Despite the slight decline, the April figure was still higher than the average of 51 for the first three months of the year and 51.2 for April 2017.

Production saw steady expansion and demand was “generally stable,” according to senior NBS statistician Zhao Qinghe, as the subindex for production held steady at 53.1 and the new order sub-index dropped slightly to 52.9.

Chen Zhongtao, analyst with the China Logistics Information Center, held a similar view, stating that the new figures reflected stability in domestic demand, production and employment.

The sub-index for employment decreased 0.1 to 49, remaining relatively high for the new normal of economic growth, Chen added.

China’s non-manufacturing sector expanded at a faster rate for a second consecutive month in April.

The sector’s PMI rose from 54.6 in March to 54.8 in April, higher than the 54 registered in April 2017.

The sub-index for new orders rose one point from the previous month to 51.1, showing faster growth in market demand.

Sub-indices for intermediary prices, sales prices and business outlook all increased from the previous month.

The service sector, which accounts for more than half of the country’s GDP, showed sound momentum, with the sub-reading up 0.2 from March to 53.8.

Faster expansion was also seen in air transportation, courier services, accommodation, telecommunications and software, the NBS said.