China’s manufacturing PMI index edged lower to 50.1 in April from 50.2 the previous month and also slightly below the consensus estimate of 50.3.
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Following three consecutive months of growth, Indian manufacturers saw the incoming new orders broadly stagnating in April. There were divergences with regards to stock levels, with holdings of finished goods continuing to fall while pre-production inventories rose again.
The Nikkei/Markit India Manufacturing Purchasing Managers’ Index (PMI) – a composite indicator of manufacturing sector performance – fell from 52.4 in March to 50.5 in April. The PMI fell to 50.1 from 50.2 in March.
Manufacturing growth was strong in Italy and, buoyed by rising demand at home and overseas, hit a three-month high in Germany. In contrast to the picture for total new business, new work from overseas continued to increase. China’s economy stabilized last quarter and gathered pace in March as a surge in new credit helped the property sector rebound while raising fresh question marks over the sustainability of the debt-fueled expansion.
However, greater competition for new work led companies to discount their prices charged in April. As a result, selling prices slid for the fourth successive month.
Regarding employment, the survey said, manufacturing sector hiring remained broadly unchanged – a trend that has been evident for nearly two years. That was down from its highest since early 2008 but still above the long-run average.
So far, the massive European Central Bank stimulus and weaker euro has yet to feed through to euro zone factories which operated only marginally faster in April. The prices rises will increase the cost of production and make exports more expensive. That said, the rate of charge inflation softened marginally since March.
China’s service sector activity slowed in April, official data showed on Sunday.
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“While margins remain tight, recovering domestic market share and building momentum in a variety of export markets provide a strong foundation for the lift in confidence required for the sector to move up another gear”, Willox said in a statement.
