China’s non-manufacturing activity records disappointing growth

China’s National Bureau of Statistics revealed the growth of non-manufacturing activity at a slower pace during April.

The report stated that this is a negative indicator for policymakers who rely on the consumption of services to offset weakness in the factory sector amid a slowdown in global demand.

The official purchasing managers’ index in China’s non-manufacturing sector recorded 56.4 in April, compared with last March’s 58.2, to remain above the 50-point level that separates growth from contraction in activity on a monthly basis.

The composite official purchasing managers’ index, which includes manufacturing and services, was 54.4, compared with 57 in March.

An official survey showed on Sunday that China’s factory activity fell in April.

According to the Government Statistics Office and an official industry group, the monthly PMI fell to 49.2 in April, from 51.9 in March on a 100-point scale, with figures below 50 indicating a decline in activity.

The output index remained above 50, which means there is still an expansion.

China’s economic growth rose in the first quarter of this year after the abrupt end of measures and restrictions against COVID-19.