China's manufacturing shrinks in April as trade war bites
BEIJING
China's manufacturing activity shrank in April after growing at its highest rate in a year the previous month, official data showed on Wednesday, as Beijing fights an intensifying trade war with the United States.
The Purchasing Managers' Index came in at 49 in April, according to the National Bureau of Statistics (NBS), below the 50-point mark that separates growth and contraction.
The reading for April was down from March's 50.5, the highest in 12 months.
"In April, affected by factors such as a high base from earlier rapid manufacturing growth and a sharp shift in the external environment, the manufacturing PMI fell," NBS statistician Zhao Qinghe said.
Economists have warned that the disruption in trade between the two tightly integrated U.S. and Chinese economies could threaten businesses, increase prices for consumers and cause a global recession.
Chinese exports soared more than 12 percent last month as businesses rushed to get ahead of the swingeing tariffs.
The world's second-largest economy is also facing sluggish domestic demand and a protracted property sector crisis.
Authorities last year announced a slew of aggressive stimulus measures aimed at boosting growth including rate cuts and the easing of some home purchasing restrictions.
They also said they would aim for growth this year of 5 percent, the same as 2024 and a goal considered ambitious by many economists.
