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China’s Services, Factory Activity Both Contract in April

Manufacturing Purchasing Managers’ Index fell for second straight month.

A medical worker in a protective suit collects a swab from a resident amid the coronavirus lockdown in Shanghai, April 22, 2022. Cnsphoto via Reuters.

China’s service sector activity contracted in April for the second straight month as lockdowns continue to paralyze many cities, while factory activity also contracted.

The non-manufacturing Purchasing Managers’ Index (which measures services) fell to 41.9 in April, from 48.4 in March, the National Bureau of Statistics said. A reading above the 50-point mark indicates expansion in activity while a reading below indicates contraction.

Factory activity also contracted in April, as lockdowns slowed production and disrupted supply chains. The Manufacturing Purchasing Managers’ Index (PMI) fell to 47.4 in April from 49.5 in March, the National Bureau of Statistics (NBS) said.

Dozens of major China cities are believed to be in full or partial lockdowns, including the commercial hub Shanghai. With hundreds of millions of people stuck in their homes, consumption is taking a heavy hit, prompting more analysts to cut growth forecasts for the world’s second-largest economy.

China’s official composite PMI, which includes both manufacturing and services activity, also fell to 42.7 from 48.8 in March.

  • Reuters, with editing by Neal McGrath




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Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.


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