China’s Consumers Lead Recovery in April

Retail spending has come back strong, but surveys also showed a surprise contraction in factory activity in April

A rebound in China is essential to support global economic growth this year. Photo: Kevin Frayer/Getty Images

SINGAPORE—Activity in China’s services sector grew at a healthy pace in April, a sign that Chinese consumers continue to drive the country’s economic rebound as its factory sector quickly decelerates.

China’s official purchasing managers index for the nonmanufacturing sectors of the economy—that is, services and construction—came in at 56.4 in April, a weaker reading than March’s 58.2 level but still comfortably above the 50 mark that separates expansion from contraction, according to data released Sunday by China’s National Bureau of Statistics.

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