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China PMI April 2018

China: Manufacturing PMI edges down in April

The manufacturing purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) inched down from 51.5% points in March to 51.4% in April. The result came in just above market analysts’ expectations of 51.3%. The index remains above the 50% threshold that separates expansion from contraction in the manufacturing sector, where it has stood for nearly two years.

Looking at sub-components of the index, the minor slowdown in April was driven by an easing in new order growth. The sub-indices for stocks of inventories for raw materials and employment prospects both edged further below the 50% threshold. Supplier delivery times lengthened slightly. Meanwhile, output remained steady. In addition, export orders cooled in the month, pointing to softer demand in the trade sector amid trade skirmishes with the United States.

The index for input prices—a gauge for overall inflation—continued to moderate in April, signaling a deceleration in commodity price increases.

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