The external environment changed drastically, China's official manufacturing PMI fell to 49 in April, while the non-manufacturing PMI was 50.4.

Source: Wall Street News

Affected by factors such as the sharp changes in the external environment, the manufacturing purchasing managers' index in April declined compared with the previous month. However, related industries such as high-tech manufacturing continued to expand, and the production and operation of manufacturing enterprises mainly focused on domestic sales remained generally stable.

On Wednesday, April 30, data released by the National Bureau of Statistics showed that China's official manufacturing PMI in April was 49, a decrease of 1.5 percentage points compared with the previous month, and the prosperity level of the manufacturing industry declined. China's official non-manufacturing PMI in April was 50.4, with the previous value being 50.8. It was still above the critical point, and the non-manufacturing industry continued to expand. China's official composite PMI in April was 50.2, with the previous value being 51.4, indicating that the production and operation activities of enterprises in China maintained expansion.

Looking at key industries, the overall market demand for new driving forces maintained a steady and growing trend, and the domestic market demand maintained good growth. In April, the purchasing managers' index of high-tech manufacturing was 51.5%, significantly higher than the overall level of the manufacturing industry, continuing a good development trend. The new order index of the consumer goods manufacturing industry was also at the critical point of 50%, meaning that the domestic market demand of the consumer goods manufacturing industry was well released.

Experts said that although the changes in the foreign trade environment in April brought certain disturbances to China's manufacturing industry, the advantages of China's super-large market and complete industrial chain and supply chain system continued to play a role, which could effectively resist external shocks and ensure the stable operation of the economy.

I. Operation of China's Manufacturing Purchasing Managers' Index

In terms of enterprise scale, the PMIs of large, medium, and small enterprises were 49.2%, 48.8%, and 48.7% respectively, a decrease of 2.0, 1.1, and 0.9 percentage points compared with the previous month, all of which were below the critical point.

In terms of sub-indexes, among the five sub-indexes that make up the manufacturing PMI, the supplier delivery time index was above the critical point, while the production index, new order index, raw material inventory index, and employment index were all below the critical point.

The production index was 49.8%, a decrease of 2.8 percentage points compared with the previous month, indicating that the production of manufacturing enterprises slowed down slightly.

The new order index was 49.2%, a decrease of 2.6 percentage points compared with the previous month, indicating that the market demand in the manufacturing industry declined.

The raw material inventory index was 47.0%, a decrease of 0.2 percentage points compared with the previous month, indicating that the inventory of major raw materials in the manufacturing industry decreased compared with the previous month.

The employment index was 47.9%, a decrease of 0.3 percentage points compared with the previous month, indicating that the employment prosperity of manufacturing enterprises declined.

The supplier delivery time index was 50.2%, a decrease of 0.1 percentage point compared with the previous month, still above the critical point, indicating that the delivery time of raw material suppliers in the manufacturing industry continued to accelerate.

II. The Business Activity Index of the Non-Manufacturing Industry Continued to Expand

In terms of the situation of the non-manufacturing industry, the non-manufacturing industry as a whole continued to expand, and investment, consumption, and activities related to new driving forces all showed positive performances.

In April, the business activity index of the non-manufacturing industry was 50.4%, a decrease of 0.4 percentage points compared with the previous month, still above the critical point, and the non-manufacturing industry continued to expand. The new order index of the non-manufacturing industry was 46.6%, an increase of 0.5 percentage points compared with the previous month, and the market demand prosperity recovered. The employment index was 45.8%, a decrease of 0.7 percentage points compared with the previous month, and the employment prosperity of non-manufacturing enterprises declined.

In terms of industries, the business activity index of the construction industry was 51.9%, a decrease of 1.5 percentage points compared with the previous month; the business activity index of the service industry was 50.1%, a decrease of 0.2 percentage points compared with the previous month. In terms of industries, the business activity indexes of industries such as air transportation, telecommunications, radio and television and satellite transmission services, Internet software and information technology services, and insurance were all in the high prosperity range above 55.0%; the business activity indexes of industries such as water transportation and capital market services were all below the critical point.

The new order index was 46.6%, an increase of 0.5 percentage points compared with the previous month, indicating that the market demand prosperity of the non-manufacturing industry recovered. In terms of industries, the new order index of the construction industry was 43.5%, a decrease of 3.3 percentage points compared with the previous month; the new order index of the service industry was 47.1%, an increase of 1.2 percentage points compared with the previous month.

The input price index was 48.6%, an increase of 0.2 percentage points compared with the previous month, still below the critical point, indicating that the overall decline in the prices of inputs used by non-manufacturing enterprises for business activities narrowed. In terms of industries, the input price index of the construction industry was 49.5%, an increase of 0.2 percentage points compared with the previous month; the input price index of the service industry was 48.4%, an increase of 0.2 percentage points compared with the previous month.

The sales price index was 46.7%, a decrease of 1.1 percentage points compared with the previous month, indicating that the overall level of sales prices in the non-manufacturing industry continued to decline. In terms of industries, the sales price index of the construction industry was 47.5%, a decrease of 1.6 percentage points compared with the previous month; the sales price index of the service industry was 46.6%, a decrease of 1.0 percentage point compared with the previous month.

The employment index was 45.8%, a decrease of 0.7 percentage points compared with the previous month, indicating that the employment prosperity of non-manufacturing enterprises declined. In terms of industries, the employment index of the construction industry was 41.4%, a decrease of 4.2 percentage points compared with the previous month; the employment index of the service industry was 46.5%, a decrease of 0.2 percentage points compared with the previous month.

The business activity expectation index was 57.2%, an increase of 0.6 percentage points compared with the previous month, indicating that non-manufacturing enterprises had increased confidence in the recent market development. In terms of industries, the business activity expectation index of the construction industry was 55.3%, an increase of 0.6 percentage points compared with the previous month; the business activity expectation index of the service industry was 57.5%, an increase of 0.6 percentage points compared with the previous month.

III. Operation of China's Composite PMI Output Index

In April, the composite PMI output index was 50.2%, a decrease of 1.2 percentage points compared with the previous month, and it continued to be above the critical point, indicating that the production and operation activities of enterprises in China maintained expansion.

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