Both China’s Manufacturing (50.1) and Non-manufacturing (54.3) PMI for April came in below expectations.
While the Manufacturing PMI remained marginally above 50, it indicates China’s growth recovery remains shallow for now. This should come as no surprise, as the Chinese government is aiming to achieve targeted stimulus in specific areas without provoking too much credit growth. In addition, the transition to a more consumer-driven economy means economic growth will slow over time. While not immediately worrisome, the latest Chinese PMI data implies the recovery remains fragile for now.