Macmillan Jones - Chinese Manufacturing Growth Better Than Expected
Macmillan Jones - Better than expected growth for small to mid-size manufacturing companies while official PMI slowed in April.
TAIPEI CITY, Taiwan, May 4, 2018 (Newswire.com) - According to the results of a survey on small and mid-size manufacturing companies in China, growth was better than anticipated last month.
Macmillan Jones analysts say the Caixin/Markit PMI reported growth of 51.1 for April which was better than the anticipated 50.9. In March the index came in at 51. Macmillan Jones analysts say any reading higher than 50 is considered expansion and anything below indicates contraction.
The Caixin/IHS Markit China manufacturing PMI is a reading of smaller companies whereas the official PMI focuses on larger manufacturing businesses. The official PMI data was released at the start of this week and revealed that growth in China’s manufacturing industry had declined slightly from 51.5 in March to 51.4 in April.
The lower reading which reflected a drop in export orders, fueled concerns over an anticipated slowdown in China’s economy as policymakers try to deal with debt risks and growing tensions over trade with the United States.
In spite of the better than anticipated reading in the small business sector, Macmillan Jones economists say expansion for new business slowed for the second consecutive month, indicating a decline in demand in the manufacturing sector.
Macmillan Jones economists stated that manufacturers are seeing a rapid decrease in international demand as new export orders fell for the first time in over a year last month.
Macmillan Jones analysts reported that although operating conditions throughout China’s manufacturing industry continued to improve last month, export uncertainty was on the rise and, as a result, reliance on domestic demand was increasing.
Source: Macmillan Jones