Manufacturing growth slows; momentum steady
China’s manufacturing growth slowed in April as the government tightened supervision of financial risks, but still maintains momentum, according to analysts.
The Purchasing Managers’ Index, which reflects the manufacturing sector’s performance, registered 51.2 in April, slightly lower than 51.8 a month earlier, according to data from the National Bureau of Statistics. The figure remains above the year-ago index of 50.1.
A figure above 50 indicates growth in the sector, which is a key driver of the Chinese economy, while anything below points to contraction. The reading has kept above 50 for nine consecutive months.
Although the growth speed slowed a little compared with the previous two months, remaining above the 50 boom-or-bust point means that the sector has not lost its growth momentum and the economic fundamentals remain sound, according to Zhao Qinghe, a senior NBS statistician.