China Manufacturing Activity Seen Growing in April
By wchung | 06 Feb, 2025

China’s manufacturing sector picked up steam in April, suggesting that the central government’s easing measures are taking effect, according to manufacturing purchasing manager’s index (PMI) data released by HSBC Monday.

An early estimate of the manufacturing sector sentiment shows that the PMI rose from 48.3 in March to 49.1 in April. A reading above 50 indicates expansion and a reading below 50 indicates contraction.

“In an historical context, the pace of both output and demand growth has remained at a low level and the job market is under pressure,” said Qu Hongbin, HSBC China’s chief economist. “This calls for additional easing measures in the coming months. We expect monetary and fiscal easing to speed up in the second quarter.”

HSBC issues its so-called “flash PMI” a week ahead of its final PMI reading based on 85%-90% of the total responses to a monthly PMI survey. China’s Bureau of Statistics and the China Federation of Logistics and Purchasing will release official PMI data for April on May 1. The official data, which is considered more authoritative, is based on a survey of purchasing managers in more than 820 companies in 20 industries.

Last month the official data diverged materially from HSBC’s reading, jumping 2.1 points over March to 53.1 and beating analysts’ expectations, including HSBC’s final March PMI of 48.3. The difference was attributed to a difference in methods for sampling and seasonal adjustments. The official PMI index polls over 800 enterprises, including many large state-owned enterprises, while HSBC samples around 400 small and medium firms.