KBA - China Manufacturing unexpectedly shrinks to 49.5 in April missing expectations

2023-05-04 02:52:02 ET

• The Caixin China General Manufacturing PMI unexpectedly fell to 49.5 in April 2022 from 50.0 in March, missing market forecasts of 50.3.

• The latest result was the first contraction in factory activity since January, amid an ongoing property downturn and fears of a global slowdown.
• New orders shrank after rising in March, while employment declined the most in 3 months.
• Meantime, output growth slowed for the second month, and buying activity went up the least since January. amid stable foreign orders.
• Delivery times improved for the third time, with firms noting that vendors were less busy.
• On the cost side, input prices were down for the first time in 7 months, falling the most since the start of 2016, due to lower prices in raw materials.
• Meanwhile, selling prices fell at the steepest pace since December 2015 as firms sought to attract new business.

• China’s official manufacturing PMI, a competing gauge, dropped to 49.2 in April from the previous month’s 51.9 reading.

• Finally, sentiment strengthened on the back of new product releases, supportive state policies, and investment in new equipment.
• ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).

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