China’s manufacturing PMI holds at 50.3 in April as costs stay elevated

New export orders climbed whilst domestic demand indicators weaken across industries.

China’s manufacturing sector edged into marginal expansion in April, as its Purchasing Managers’ Index (PMI) stood at 50.3, down 0.1 point from the previous month but above the Bloomberg consensus of 50.1.

Data from NBS, as cited by UOB Kay Hian, showed that output remained stable at 51.5, whilst new orders fell to 50.6. New export orders rose to 50.3.

Input cost pressures remained elevated. The purchase prices sub-index stood at 63.7, whilst output prices were 55.1. Business expectations strengthened to 54.5.

Non-manufacturing PMI fell to 49.4 from 50.1, missing consensus estimates and moving back into contraction territory.

The services index declined to 49.6, whilst construction fell further to 48.0.

New orders in the non-manufacturing sector dropped to 44.3, whilst new export orders also fell to 47.3.

Enterprise-level data showed narrow expansion across firm sizes. Large enterprises recorded a PMI of 50.2, down 1.4 points. Mid-sized enterprises rose to 50.5, whilst small enterprises increased to 50.1.

Manufacturing margins remained under pressure as input costs stayed elevated relative to output prices.

The report highlighted cost pressures and foreign exchange translation losses as key factors affecting recent corporate earnings performance.