China factory activity tops expectations in April — but growth slows as new orders soften
Workers producing garments at a textile factory that supplies clothes to fast fashion e-commerce company Shein in Guangzhou in southern China’s Guangdong province.
Jade Gao | Afp | Getty Images
China’s factory activity topped analysts’ expectations, albeit growth slowed from the prior month when it hit a year-high, as new orders saw a slowdown.
The official manufacturing purchasing managers’ index reading of 50.3 was higher than the the 50.1 expected by Reuters-polled economists. A figure above 50 indicates expansion, while below shows a contraction in activity.
Non-manufacturing PMI came in at 49.4, compared to the 50.1 seen in March, while the composite PMI dipped to 50.1 from March’s 50.5.
China is preparing for a summit between President Xi Jinping and U.S. President Donald Trump in May, where Beijing will likely be looking for clarity around the threat of Section 301 tariffs.
Trump’s Liberation Day tariffs had been struck down under a Supreme Court decision earlier in February, although the U.S. president had moved quickly to impose a global 10% on global imports to the U.S.
Trump and Xi met in Busan, South Korea last year and agreed to a trade truce that saw his administration reduce the overall tariff rate on Chinese goods to around 47%, while Beijing pledged to suspend sweeping export controls on rare earths.
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