Last month’s PMI was also the highest level since April last year, when the official PMI reached 59.2, investment bank Goldman Sachs said in a note, quoting official data.
It sank to a record low of 38.8 in November due to the global financial crisis, but has improved continuously in the five months since, although it only moved above 50 in March.
This « sends a clear signal that real economic activity growth has been improving on a sequential basis from its trough last November, » Goldman Sachs said.
A reading of above 50 suggests expansion, while one below 50 indicates contraction.
The PMI is a composite of a package of indices that measure economic performance. The survey, jointly conducted by the National Bureau of Statistics (NBS), covers purchasing and supply managers of more than 700 manufacturers across China.
All the April indices, except those measuring finished product inventory, raw materials inventory and suppliers’ delivery time, rose with most up by less than 2 percentage points.
Indices measuring output and new orders rose by 0.5 and 2.0 percentage points to remain above 50 percent for a third straight month.
The purchasing price index was up 3.0 percentage points to 51.3percent, the first time it was above 50 percent since September last year.
The employment index also surpassed 50 percent fir the first time since October last year, as it rose 1.7 percentage points to 50.3 percent.
« The continuous rebound of the PMI shows Chinese economy is on track for recovery. The first-quarter investment, consumption and export figures also reflected this trend. » said Zhang Liqun, a researcher with the Development Research Center of the State Council.
Manufacturing accounts for more than 40 percent of China’s economy, which has been hit hard by the big drop in demand for its products in key export markets such as the United States and Europe.
Source : Konaxis
