China: Pullback in manufacturing and services PMI figures for April - ANZ

The analysis team at ANZ points out that China’s PMI figures for manufacturing and services showed a pull-back in April, and softening growth momentum in Q2 relative to Q1.

Key Quotes

“The figures (manufacturing 51.2, services 54) were still above the key 50 threshold, and reaching the Government’s growth target of 6.5% looks on track. Monetary policy is tightening, city specific tightening measures with regard to property are in, greater emphasis is being placed on financial stability, and financial deleveraging needs to take place. So it’s inevitable that the Chinese growth cycle steps down a gear, and commodity price action has already been bearing that out.”