Summary

• China’s purchasing managers’ index fared better than expected as new export orders and imports returned to expansion for the first time since early 2024.
• But softer domestic activity sent the non-manufacturing PMI back into contraction.
• Price pressures also stayed firmly in expansionary territory, suggesting China's reflation is continuing.

By Lynn Song, Chief Economist, Greater China

Official manufacturing PMI broadly stable in April

China's official manufacturing purchasing managers’ index edged down slightly to 50.3 in April from 50.4 but still came in stronger than both