- National Bureau of Statistics
Activity in China's manufacturing sector increased for the second month in a row in April, but only marginally, fuelling doubts about the sustainability of a recent pick-up in the world's second-largest economy. According to the National Bureau of Statistics, the official Purchasing Managers' Index climbed to 50.1 in April, easing from March's 50.2 and slightly above the 50-point mark that separates expansion in activity from contraction. A sub-index measuring new factory orders decreased to 51.0 from 51.4 in March, while the production sub-index dropped slightly to 52.2 from 52.3 in March. China's factories continued to lay off workers, with staff cuts quickening from the previous month. The official PMI survey has shown persistent declines in employment for the last 3-1/2 years. China's official nonmanufacturing PMI also dropped to 53.5 from 53.8 in March. The unexpected, if modest, decline in activity suggested that government efforts to support growth by expanding credit are having a short-lived effect.
The first quarter of 2016 saw economic growth of 6.7%, coming in line with the government's 6.5-7% target range for 2016. Economists expect that the trend will continue to slow to 6.5% in 2016 and 6.2% in 2017-2018.
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