The HSBC China Manufacturing PMI indicated a contraction in April, with a preliminary reading of 49.5. This figure is below the 50 mark, which separates expansion from contraction, signaling a decline in manufacturing activity.

Key highlights from the report include:

• A decrease in new orders, suggesting weaker demand.
• A slowdown in production growth.
• Rising input costs, potentially impacting profitability.

Economists suggest that the contraction may prompt further government intervention to support economic growth. Potential measures could include targeted fiscal stimulus and monetary easing.

The final PMI reading for April will be released at the beginning of next month, providing a more comprehensive assessment of the manufacturing sector’s performance.