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MNI BRIEF: China's April PMI Falls To Contraction Zone

MNI (Singapore)

China's Purchasing Managers' Index (PMI) registered 49.2 in April, falling after a three-month consecutive rise and indicating weak demand continued to curb the economic recovery, data from the National Bureau of Statistics showed Sunday.

The production sub-index marked 50.2 in April, slower than March's 51.9 reading. The new orders sub-index – a gauge of demand – stood at 48.8, sliding from last month's 53.6. In additional to sluggish demand, high base effect due to the fast expansion of manufacturing in Q1, also contributed to the fall, the NBS explained.

The non-manufacturing PMI registered a reading of 56.4, compared to March's 58.2. The sub-index of new orders remained high at 56.4 and the index gauging personal travel and consumption recorded above 60, reflecting good momentum in the services industry, the NBS said.

China Federation of Logistics and Purchasing, which issued PMI data jointly with NBS, said the economy will take time to show an overall expansion and growth. Investment will further strengthen the recovery alongside policy support to infrastructure and the property sectors, which will boost manufacturing.


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