China's official manufacturing PMI edged into expansion in April

The data, from the National Bureau of Statistics and the China Federation of Logistics and Purchasing in Beijing is here: China official April Manufacturing PMI: 50.1 (expected 50) & Services 53.4 (prior 53.7)

Bloomberg have a follow up:

Zhu Qibing, an economist at China Minzu Securities Co. in Beijing:

  • "This is indeed a signal of stabilization"
  • Added that electricity consumption and industrial product prices that he tracks showed a pickup in the second half of April
  • "The next monetary policy move in the near future is more likely an interest-rate cut rather than another RRR cut"
  • "Targeted measures like PSL are even more likely than an interest rate cut."

On the other hand...

Bill Adams, an economist at PNC Financial Services Group, wrote in a note

  • "The employment sub-indices of the PMIs show a majority of surveyed business managers reporting net declines in payrolls on the month"
  • "Growth in China likely hasn't bottomed out yet"

More at the link