China manufacturing PMI dips in April

Manufacturing activity in China over April slowed slightly compared to the previous month but remains in positive territory, new purchasing managers' index data shows.

Manufacturing activity in China over April slowed slightly compared to the previous month but remains in positive territory, new purchasing managers' index data shows.

According to China's National Bureau of Statistics the PMI index dropped to 50.6 in April, down from 50.9 the month before.

 

Any figure above 50 indicates expansion, while a figure below 50 indicates contraction.

 

China Federation of Logistics and Purchasing officials said the data showed more effort was needed to stabilise the Chinese economy.

 

“The April PMI index fell slightly, indicating that the foundation for economic stabilisation is still not solidified,” CFLP analyst Zhang Liqun said.

 

In light of the new figures Liqun said “effort should be made to stabilise domestic consumption, and increase the sustainability of the stabilisation of the economy”.

 

Along with China, Japan and Australia have also recently released new PMI data.

 

Yesterday figures showed Japan's April manufacturing PMI posted the fastest expansion in over a year, rising to 51.1, up from 50.4 in march.

 

Closer to home the Australian Industry Group Australian PMI showed the local sector continued to shrink, with low exports, slow activity in Victoria, and high costs hurting results.

 

Overall the Australian PMI levelled at 36.7, the lowest level since May 2009.