More on the official China PMIs earlier (manufacturing both expanded but more slowly)

A sub-index of new export orders for factories 50.4 in April (from 51.2 in March)

  • new orders 52
  • manufacturing employment 49.6
  • non-manufacturing employment 48.7

Data out China earlier in the month showed better for retail sales climbed and a less heated result for industrial output growth. Manufacturers are benefitting from rising prices and profits. Exporters are reaping gains from the boost to US spending given by US fiscal stimulus.

On the other side though measures to address carbon emissions in industry poses a headwind. 

Services are benefiting from stronger consumer confidence
  • & travel restrictions are lifted

Construction sector:

  • local governments slowing the pace of debt growth
  • fixed-asset project approval is dropping
  • tighter financing rules for the property sector

Source

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