Photo: HSBC, Markit
The number came in at 49.3, which was higher than the 49.1 flash number. However, it’s still below the 50 reading.Key points:
- Manufacturing output and new orders both fall at marginal rates
- Employment down at fastest rate in over three years
- Input cost inflation remains subdued
April data pointed to further reductions in manufacturing output and new business, although rates of decline were marginal in both cases. Consequently, companies remained cautious with regards to hiring, highlighted by the index measuring trends in manufacturing employment reaching its lowest level in 37 months. On the price front, charges at the factory gate were unchanged, while average input costs increased only marginally.
“The upward revision to April’s final PMI reading, compared to the flash estimate, confirms that the pace of China’s slowdown is stabilised. The 8.1% y-o-y GDP growth is likely to be the cyclical trough. As easing measures are starting to work and additional easing measures are on the way in the light of accommodative inflation outlook in the coming months, we expect Chinese GDP growth to bottom out in 2Q and recover modestly to over 8.5% in 2H.”
All eyes will be on China’s HSBC Manufacturing PMI number, which will be released at 10:30 PM EST tonight.
Yesterday, the Chinese government told us that their official PMI number climbed to 53.3 from 53.1 in March.
Earlier this month, the HSBC Flash number (preliminary) jumped to 49.1 from 48.3 the month prior.
A reading above 50 signals expansion in the sector.