In April, Caixin China'S Manufacturing PMI Dropped To 49.4 And Then Returned To The Contraction Zone.

The two impact of the spread of overseas epidemic on China's economy is beginning to show. In April 30th, Caixin China's Manufacturing Purchasing Managers Index (PMI) released in April was 49.4, down 0.7 percentage points from March, and returned to the contraction interval, indicating that the manufacturing industry was in a bad mood.

This trend is consistent with the PMI of the National Bureau of statistics. The PMI released by the National Bureau of statistics in April was 50.8, down 1.2 percentage points from March.

With the promotion of the resumption of domestic enterprises, the manufacturing industry has been rebounded for two consecutive months, but the overall growth rate is still slight. The new orders index contracted for three consecutive months and continued to fall in April, mainly due to the weakening of overseas demand. The epidemic is spreading all over the world, and many cities are closed to cities and enterprises are closed down. The new export orders index is in the contraction area for four consecutive months, and the contraction rate in April is larger than that in February.

Weak demand led to four consecutive months of compression in the manufacturing sector, and the employment index dropped slightly in the contraction range in April. At the same time, enterprises are still digesting the previous orders, the backlog workload has increased further, but the rise has slowed down for two consecutive months.

The reduction of orders also led manufacturers to continue to reduce procurement and increase the use of existing inventory. Stocks of raw materials further declined, but the decline was small. Output recovery is fast and demand is reduced, stacking goods and materials are difficult to transport, and finished goods inventory is rising further.

The purchase price of raw materials recorded the most significant decline in more than four years in April. Many enterprises say that the cost reduction is related to the reduction of raw materials such as metals. In order to maintain competitiveness and boost sales, manufacturers also continue to lower the price of their products.

China's manufacturing industry is generally frustrated by fears that the long duration of the new crown will be combating global demand, and its optimism for output in the next 12 months has dropped to its lowest level in four months.

Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that the resumption of domestic production resumed in April, but export orders declined sharply, which severely restricted the further restoration of China's economy. Under the two impact, entrepreneurs' confidence, employment and industrial raw materials inventory problems are more prominent. In April 17th, the meeting of the Political Bureau of the Central Committee put forward "six guarantees", which is particularly necessary for the weak links of small and medium-sized enterprises and residents' income.