China: Manufacturing and non-manufacturing PMIs drop in April
Latest reading: China’s official NBS Manufacturing PMI edged lower to 50.3 in April 2026 from 50.4 in March, remaining in expansionary territory for a second straight month and coming in above market forecasts. Factory output strengthened, while new orders softened. External demand improved as export orders returned to growth. Purchasing activity also picked up, though employment stayed below the expansion threshold and supplier delivery times remained in contractionary territory.
Meanwhile, the NBS Non-Manufacturing PMI dropped to 49.4 in April 2026 from 50.1 in March, undershooting expectations and indicating a fresh contraction in the services-heavy sector. The deterioration was broad-based: activity weakened in both construction and services, with sentiment softening across most industries, even as transport and telecom-related services remained comparatively resilient. New orders continued to decline, pointing to muted domestic demand, while employment improved slightly but stayed in contraction.
Panelist insight: Commenting on the data, Nomura analysts said:
“The fallback in the non-manufacturing PMI suggests muted demand for travel and catering ahead of the Labour Day holiday, as the protracted property sector downturn continues to weigh on household purchasing power.”