China factory activity tops expectations in April — but growth slows as new orders soften
Workers producing clothes at a textile factory that supplies clothes to fast-fashion e-commerce company Shein in Guangzhou, in China’s southern Guangdong province.
Jade Gao | Afp | Getty Images
China’s factory activity beat analysts’ expectations, but growth slowed from the previous month, when it reached a year-round high, as new orders slowed.
Official manufacturing purchasing managers’ index reading of 50.3 was above the 50.1 expected by economists surveyed by Reuters. A number above 50 indicates expansion, while a number below indicates contraction in activity.
Non-manufacturing PMI was 49.4 compared to 50.1 in March, while composite PMI decreased to 50.1 from 50.5 in March.
China is preparing for a summit between President Xi Jinping and U.S. President Donald Trump in May, where Beijing will likely seek clarity on the threat of Section 301 tariffs.
Trump’s Independence Day tariffs were struck down by a Supreme Court decision in early February; however, the US president had moved quickly to impose a 10% global tariff on global imports to the US.
Trump and Xi met in Busan, South Korea, last year and agreed to a trade truce in which his administration reduced overall tariffs on Chinese goods to around 47%. Beijing has vowed to suspend extensive export controls on rare earths.
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