Segment contracts in April for the fourth consecutive month.
South China Morning Post reported that mainland China’s manufacturing sector is continuing to lose momentum as the latest HSBC/Markit survey revealed a purchasing managers’ index (PMI) reading of 48.1 – lower than the preliminary reading of 48.3 but slightly higher than the eight-month low reading of 48.0 recorded in March.
As the reading is lower than 50, it suggests that the sector is undergoing contraction rather than growth, and has been since the start of the year. The Recycler reported last year on the sector’s struggle as it reached an 11-month low in July at 47.7, although it reached a PMI reading of 51 in September.
In April this year, output and new orders contracted despite new export orders showing a recovery in March. Qu Hongbin, Chief Economist for China at HSBC, reportedly called for the government to take “bold action” to ensure the economy regains momentum.
“The latest data implied that domestic demand contracted at a slower pace but remained sluggish,” said Hongbin. “Meanwhile, the new export orders and employment sub-indices contracted and were revised down from the earlier, flash readings. These indicate that the manufacturing sector, and the broader economy as a whole, continues to lose momentum.”