China factory activity tops expectations in April — but growth slows as new orders soften

china's factory activity beat expectations in april, but growth slowed from the prior month's year-high. the official manufacturing pmi came in at 50.3, above the 50.1 forecast by reuters-polled economists. new orders softened, with the sub-index falling to 50.6 from 51.6 in march. non-manufacturing pmi fell into contraction at 49.4, down from 50.1 in march, as services and construction both shrank. the composite pmi dipped to 50.1 from 50.5. hao zhou at guotai junan said industry looks firm but services and domestic demand show weakness, keeping internal demand high on the policy agenda. zhiwei zhang at pinpoint noted the new export order index rose above 50 for the first time in two years, to 50.3, and said manufacturing hasn't been hurt by the middle east conflict. zhou cautioned input prices are running hot as oil remains sensitive to those tensions. a private pmi from ratingdog and s&p global hit 52.2 against an expected 51 — the strongest since december 2020. ratingdog cited solid demand, improved operations, and new product launches. china is preparing for a summit between xi jinping and donald trump in may, likely seeking clarity on section 301 tariffs.