China’s Factory Activity Unexpectedly Contracts in April

What’s new: China’s manufacturing sector contracted in April for the first time this year due to factors such as weaker global demand and a high base of comparison in the rapid recovery of the first quarter.

The purchasing managers’ index (PMI) for manufacturing fell to 49.2 in April from 51.9 in March. It was the first time since December for the gauge to fall below 50, signaling contraction, according to data released April 3 by the National Bureau of Statistics. Subindexes for new orders, new export orders and manufacturing employment were all below 50.