Data released on the 30th by the National Bureau of Statistics Service Industry Survey Center and the China Federation of Logistics & Purchasing shows that in April, the Manufacturing Purchasing Managers' Index (PMI) stood at 50.3%, remaining in expansion territory. The Non-Manufacturing Business Activity Index was 49.4%, a decrease of 0.7 percentage points from the previous month. The Composite PMI Output Index was 50.1%, still above the critical point, indicating that China's overall economic output continues to expand.
The Manufacturing PMI has been above the critical point for two consecutive months, reflecting generally stable and favorable operating conditions. In April, the production index was 51.5%, and the new orders index was 50.6%, both indices remaining above the critical point, indicating that manufacturing production and market demand continue to expand.
By sector, industries such as railway, ship, aerospace equipment, electrical machinery and equipment, and computer, communication, and other electronic equipment saw both their production and new orders indices above 53.0%, indicating a rapid release of output and demand in these related sectors. In contrast, industries like petroleum, coal and other fuel processing, and chemical raw materials and chemical products had both indices below the critical point, reflecting weaker market activity.
Driven by continued expansion in production and demand, corporate purchasing willingness strengthened further. The purchasing quantity index rose to 51.1%, up 0.2 percentage points from the previous month.
The data also revealed that in April, the PMI for large enterprises was 50.2%, staying above the critical point for the fifth consecutive month. The PMI for medium and small enterprises rose to 50.5% and 50.1% respectively, increasing by 1.5 and 0.8 percentage points from the previous month, both entering expansion territory and showing a significant rebound in business sentiment.
Small and medium-sized enterprises are showing positive changes, with improved vitality among business entities. Factors driving this improvement include the continued effects of supportive policies such as fiscal, tax, and credit benefits, alongside a stable macroeconomic environment and the advantages of foreign trade, which provide a favorable setting for the development of SMEs.
Influenced by factors such as recent high fluctuations in the prices of some bulk commodities, the main raw material purchase price index and the ex-factory price index stood at 63.7% and 55.1% respectively, remaining at relatively high levels seen in recent years, indicating a noticeable overall increase in manufacturing market price levels. In sectors like petroleum, coal and other fuel processing, and chemical raw materials and chemical products, both price indices have been above 70.0% for two consecutive months, with purchase and sales prices for related raw materials continuing to rise.
The production and business activity expectation index rose to 54.5% in April, up 1.1 percentage points from the previous month, marking the third consecutive monthly increase. This indicates that manufacturing companies have growing confidence in near-term market development.
The Non-Manufacturing Business Activity Index for April was 49.4%, down 0.7 percentage points from March, with business sentiment in both the construction and service sectors declining to varying degrees compared to the previous month.
Specifically, infrastructure-related activities continued to expand. Although the business activity index for the civil engineering construction sector declined from the previous month, it remained at a relatively high level above 52%. However, the new orders index for the construction sector remained below 50%, suggesting that the foundation for investment-related demand still needs consolidation.
Recent policy meetings have emphasized planning and construction for water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipe networks, and logistics networks, as well as promoting the start of major engineering projects where conditions are mature. As demands related to urban renewal, new infrastructure, and major projects are gradually released, the construction sector's business climate has a basis for recovery.
In April, holiday consumption during the Qingming Festival boosted business sentiment in some sectors. The business activity indices for road transport and air transport both increased from the previous month and remained above 50%. The indices for the accommodation and culture, sports & entertainment sectors rose above 55%. Although the catering sector's index remained below 50%, it showed a significant increase from March.
Overall, while non-manufacturing business sentiment declined in April compared to the previous month, some sectors still released positive signals of steady progress, and corporate expectations warmed. With the arrival of the traditional peak construction season and the May Day holiday, activities in investment and consumption-related sectors are expected to continue releasing vitality in May.