China’s Official PMI for April Indicates Expansion in Services, Manufacturing Sectors
Arslan Butt • 1 min read
The services sector in China managed to grow at a faster pace during April than in the previous month as the country heads towards resuming business activity after the coronavirus outbreak. China’s official non-manufacturing PMI for April came in at 53.2, higher than March’s reading of 52.3, staying above the 50-threshold indicating expansion.
While the uptick in activity is sure to boost the Chinese economy as it tries to get back towards expansion, analysts have warned that the services sector could remain under pressure for some more time in the wake of weak demand, both within China and internationally. Global demand has been affected severely as most countries still continue under lockdown and it could take longer than previously expected to head towards recovery.
In more positive news, China’s official composite PMI also registered a slight increase during April, climbing to 53.4 from 53 in March. The composite PMI takes into account activity across both the services as well as the manufacturing sector, and the latest figure indicates that both these sectors witnessed growth during April.
However, the official manufacturing PMI came in lower than expected at 50.8, registering a very slight rate of growth, and lower than March’s reading of 52. Economists had forecast a reading of 51 instead.