China manufacturing dips in April, latest figures suggest a slowing down of economic recovery

Data from China’s statistic bureau shows that, in April, the nation’s factory activity witnessed a decline. This as per news agency AP, signals the challenges policymakers face in their efforts to sustain the country’s economic recovery.

The official survey undertaken by the government’s statistic bureau and an official industry group was published on Sunday. It showed that China’s monthly purchasing managers’ index declined to 49.2 from 51.9 in March. On the 100-point scale, numbers below 50 indicate that activity is contracting.

In addition, as per the National Bureau of Statistics and the China Federation of Logistics & Purchasing, measures of production, new orders and even employment dropped in April.

However, the index for production remained above 50, which, as per the authorities, signals that there was still an expansion.

According to China’s National Bureau of Statistics, the country’s manufacturing purchasing managers’ index (PMI) fell to 51.1 in April from 51.9 in March. 

Zhao Qinghe, China’s National Bureau of Statistics’ senior statistician, said that this decline in the manufacturing purchasing managers’ index was due to inadequate market demand and a relatively high base figure recorded in the first quarter when recovery was fast. This suggests that the economic recovery in China may be slowing down.

In the first quarter, after the Chinese government’s abrupt end to coronavirus control regulations, the nation’s economic growth accelerated. In spite of that, authorities had warned that in the coming months, amid an uncertain global economic outlook, China will face import and export pressures. They also cautioned that the nation may face inadequate domestic market demands.

Data shows that the non-manufacturing commercial activity index decreased to 56.4 from 58.2 in March, while the composite PMI dropped to 54.4 from 57.0. 

These figures suggest a slowing down of China’s economic recovery. 

Earlier this year, the Chinese government set a conservative economic growth target of “around 5 per cent” for this year. This target will only be met if GDP grows faster in the months ahead. To achieve this, the government plans to implement various policies to stabilise growth, stimulate domestic demand, and support the development of emerging industries.

(With inputs from agencies)

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.