Recorded at 49.0, Falling Short of Market Expectations
The aftermath of the US·China tariff war has led to a contraction phase in the Chinese economy.
On April 30, China's National Bureau of Statistics announced that the Manufacturing Purchasing Managers' Index (PMI), which reflects manufacturing trends for April, was recorded at 49.0, a decrease of 1.5 points from the previous month (50.5). This figure also fell short of the market forecast of 49.8.
The PMI, which is based on a survey of corporate purchasing managers, is an indicator that reflects economic trends in the relevant sector. A reading above 50 indicates economic expansion, while a reading below 50 signals contraction.
China's manufacturing PMI had returned to expansion territory in February, rising to 50.2, and maintained this level in March. However, it reverted to contraction this month, indicating that additional economic stimulus measures are still needed.
Reuters pointed out that this was due to the end of the rush by Chinese suppliers to ship goods before the US administration under Donald Trump imposed a 145% tariff on Chinese imports.
The Caixin Manufacturing PMI, released by Chinese financial information provider Caixin on the same day, was 50.4, which is above the baseline but marked the lowest level in three months.
Wang Zhe, an economist at Caixin, noted, "The ripple effects of the US·China tariff war will gradually emerge in the second and third quarters," adding, "Policymakers should be prepared to respond promptly."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
