China official PMI for April Manufacturing 50.8 (expected 51.0)
|The official April Chinese composite PMI, which includes both manufacturing and services activity, rose to 53.4 from March's 53.
Key notes
- China April official Services PMI rises to 53.2 March (expected 52.3).
- China official PMI for April Manufacturing 50.8 (expected 51.0).
- China April official composite PMI at 53.4.
Reuters reports that the factory activity in China expanded for a second straight month in April, "as more businesses resumed work after the coronavirus-led shutdowns, though worldwide lockdowns and sliding global demand are set to hamper a recovery in the embattled economy."
The Purchasing Managers' Index (PMI) dropped to 50.8 in April from 52 in March, China's National Bureau of Statistics said on Thursday, and above the neutral 50-point mark that separates growth from contraction on a monthly basis.
As for the official non-manufacturing Purchasing Managers' Index (PMI), this rose to 53.2, from 52.3 in March, the National Bureau of Statistics said on Thursday. "The 50-point mark separates growth from contraction on a monthly basis," Reuters noted.
Beijing is counting on a bounce in services sector to help revive its economy ravaged by the pandemic. But analysts caution that the recovery will be constrained by weak consumption and sliding global demand as many economies are brought to a standstill by lockdowns to contain the virus.
Description of the Manufacturing Purchasing Managers Index
The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in the Chinese manufacturing sector. Any reading above 50 signals expansion, while a reading under 50 shows contraction. As the Chinese economy has an influence on the global economy, this economic indicator would have an impact on the Forex market.
Trump kicks up the trade-war dust
Meanwhile, there is more of a focus on escalating tensions between the US and China and trade wars are back on the agenda. In recent trade, the US President Donald Trump made very strong remarks about China which have kicked up dust that had settled just before the COVID019 outbreak. More on that here: US Pres Trump: US trade deal with China has been “upset very badly” by the coronavirus
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