China’s factory activity growth slows on supply bottlenecks, soft demand By Reuters
Home Business China’s factory activity growth slows on supply bottlenecks, soft demand By Reuters
Business - 2 weeks ago

China’s factory activity growth slows on supply bottlenecks, soft demand By Reuters


© Reuters. FILE PHOTO: Worker wearing a face mask works on a production line manufacturing bicycle steel rim at a factory in Hangzhou, Zhejiang

BEIJING (Reuters) -China’s factory activity expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum.

The official manufacturing Purchasing Manager’s Index (PMI) fell to 51.1 in April from 51.9 in March, data from the national Bureau of Statistics (NBS) showed on Friday.

It remained above the 50-point mark that separates growth from contraction on a monthly basis but was below the 51.7 in a Reuters poll of analysts.

“Some surveyed companies report that problems such as chip shortages, problems in international logistics, a shortage of containers, and rising freight rates are still severe,” NBS statistician Zhao Qinghe said.

China’s economic recovery quickened sharply in the first quarter with record growth of 18.3%, shaking off last year’s COVID-19-induced slump. Analysts now expect the world’s second-largest economy to grow 8.6% in 2021.

The robust economic recovery has outpaced rebounds seen in manufacturing competitors such as India, which are still struggling to contain new waves of coronavirus outbreaks.

The official PMI, which largely focuses on big and state-owned firms, showed businesses again laid off workers in April after increasing hiring the month before for the first time in nearly a year. A sub index for employment slipped to 49.6 from 50.1 in March.

A gauge for new export orders stood at 50.4 in April, slipping from 51.2 a month earlier but remaining in expansionary territory. A sub-index for the activity of small firms stood at 50.8 in April, up from March’s 50.4.

Riding the solid economic recovery, surging demand for raw material fuelled Chinese industrial firms’ robust profit growth in March as profits upstream outperformed those in downstream sectors.

A sub-index for raw material costs in the official PMI stood at 66.9 in April, easing from March’s 69.4 but remaining elevated.

In the services sector, activity expanded for the 14th straight month, but at a slower clip.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Leave a Comment

Check Also

“We are working on getting 100 hospital beds and over 500 oxygen concentrators,” says Jacqueline Fernandez amid COVID crisis in India : Bollywood News – Bollywood Hungama

Jacqueline Fernandez’s recently launched foundation YOLO is working endlessly to hel…