After reaching 51.8 in March, the highest level in almost five years, China's manufacturing PMI went down to 51.2 in April. The latest reading indicates that the growth in the manufacturing sector in China has moderated recently.

10 of the 13 sub-indices were lower than their respective levels in the previous month, while 2 sub-indices were higher than their respective levels in the previous month. The new orders index and the new export orders index dropped by 1.0 pt and 0.4 pts respectively in April, showing that the growth rates for both new domestic and export orders have decelerated recently.

Against this backdrop, the output index slid 0.4 pts in April, indicating a moderation in growth in output. Meanwhile, the input prices index fell sharply from 59.3 in March to a ten-month low of 51.8 in April, showing that upstream cost pressure has eased lately. This may be one of the biggest reasons behind a fall in ex-factory prices of industrial products: the ex-factory prices index dropped below the critical 50-mark in April.