China’s Factory Outlook Eases as Economic Recovery Moderates

(Bloomberg) -- A gauge of China’s manufacturing industry slipped in April and the services sector also weakened, suggesting the economy is still recovering but at a slower pace.

• The official manufacturing purchasing managers’ index fell to 51.1 in April from 51.9 in the previous month, the National Bureau of Statistics said Friday, lower than the median estimate of 51.8 in a Bloomberg survey of economists.
• The non-manufacturing gauge, which measures activity in the construction and services sectors, dropped to 54.9, compared to 56.1 projected by economists. Readings above 50 indicate an expansion in output.

Key Insights

What Bloomberg’s Economists Say...

Both manufacturing and non-manufacturing sectors remained comfortably in expansionary territory, confirming that the recovery is well underway. The non-manufacturing PMI again outpaced manufacturing, supporting our view of the services sector catching up and manufacturing activity peaking.

-- Chang Shu, chief Asia economist

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