China: PMIs consolidate following a big bounce in March – Deutsche Bank

Deutsche Bank analysts note that the China’s PMIs for April were disappointing where both the official (50.1 vs. 50.5) and Caixin (50.2 vs. 50.9 expected) manufacturing readings have disappointed as they also dropped from 50.5 and 50.8, respectively, last month. 

Key Quotes

“The official non-manufacturing reading also declined half a point to 54.3 (vs. 54.9 expected) leaving the composite 0.6pts lower at 53.4. The good news is that the composite reading is still higher than the five months prior to March, while the manufacturing reading is above 50 for a second consecutive month, with underlying components including new orders looking healthy. So, consolidation following a big bounce in March is probably the most appropriate way to describe the data.”