By Gina Lee
Investing.com – China’s manufacturing activity accelerated slower than expected in April, indicating that the economy continues to recover, but at a slower pace thanks to strong demand.
Earlier in the day it said the for April was 51.1, lower than the 51.7 in the forecast prepared by Investing.com and the 51.9 reading for March. He was 54.9, also below his March reading of 56.3. However, they both stayed above the 50 mark which indicates growth.
In the private sector, it was 51.9 for April, above the 50.8 forecast by Investing.com and the 50.6 for March. Investors now await the, which expires the following week.
The figures showed that “China’s economy continued to recover steadily,” but “some companies surveyed said that problems such as chip shortages, poor international logistics, container shortages and rising freight rates remain serious. “said NBS economist Zhao Qinghe in a note.
The note added that a slowdown in manufacturing supply and demand, as well as mounting cost pressures, also remain challenges.
Meanwhile, increased consumer confidence is boosting service industries as the country lifted travel restrictions earlier in the year.
On the construction side, however, the outlook is more complicated as the government reduced debt sales to finance infrastructure projects. It also approved fewer fixed asset projects that fell sharply in the first quarter compared to 2020. The real estate market also faces stricter funding rules.
“Services PMI slowed more than manufacturing PMI due to deleveraging reform in real estate, and this will continue,” Iris Pang, chief economist for Greater China at ING Bank NV in Hong Kong, told Bloomberg.
However, it projected a rebound due to a five-day holiday starting Saturday.
In the rest of Asia, the Japanese rose 2.2% month-on-month in March, above the 2% growth in the forecasts produced by Investing.com and the 1.3% contraction in February. It contracted 0.2% year-on-year in April, according to expectations, but below the 0.1% contraction in March.
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