A reading above 50 indicates expansion and a lower reading reflects contraction.
Zhao Qinghe, a senior statistician at the National Bureau of Statistics, said that although starting a month ago, the China’s Manufacturing Purchasing Managers Index was still the second highest since November and remained on the boom-depression line for two consecutive months.
He said that high-tech manufacturing continues to lead the trend, and the import and export industry is showing signs of warming.
The high-tech manufacturer’s purchasing managers’ index rose for the fourth consecutive month in April, reaching 52.9, far above the overall level. The technology companies surveyed saw the best improvement in new orders within 10 months.
“Companies report better profit margins, especially ferrous metal processing,” Zhao said. “With the recent targeted tax cuts and other policy support coming into effect, the performance of small businesses has also improved.”
The sub-indices for production and new orders were 52.1 and 51.4, respectively, both showing strong momentum.
Tuesday’s data also showed a slowdown in service activity, but remained stable in April, with the non-manufacturing purchasing managers’ index dropping to 54.3 from 54.8 in March.
