FX.co ★ China Factory Activity Shrinks More than Expected

In April 2025, China's National Bureau of Statistics (NBS) reported that the Manufacturing Purchasing Managers' Index (PMI) slipped to 49.0, down from March’s 12-month peak of 50.5, and falling short of analysts' expectations of 49.8. This indicates the first downturn in manufacturing activity since January, even as the Chinese government implements stimulus measures to bolster economic recovery amidst an ongoing trade dispute with the United States. Key metrics showed declines: production fell to 49.8 from 52.6 in March, and new orders decreased to 49.2 from 51.8. Furthermore, employment contracted more sharply, dropping from 48.2 to 47.9. Input costs and selling prices also decreased more rapidly, with figures at 47.0 and 44.8 compared to 49.8 and 47.9 the previous month, respectively. Business confidence dipped to its lowest level in seven months, registering at 52.1 compared to March’s 53.8.