China's factory activity slumps as US tariffs take effect
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The news: China's factory activity contracted at the fastest pace in 16 months in April, new figures from the country's National Bureau of Statistics (NBS) show.
The numbers: China's official purchasing managers' index (PMI) fell to 49.0 in April from 50.5 in March, according to the NBS, the lowest reading since December 2023 and falling short of the 49.9 consensus.
The non-manufacturing PMI, which includes services and construction, also lowered to 50.4 from 50.8, below estimates of 50.7 but still above the 50-mark separating growth from contraction.
The context: The reading reflects the impact of new US tariffs on Chinese imports, with factory owners struggling to find alternative overseas buyers for their goods.
Earlier this month, US President Donald Trump announced 145% tariffs on China, heaping pressure on the world's second largest economy which is already struggling with deflationary pressures.
The source: Reuters
