Due to the impact of equivalent tariffs, the new export order index has plummeted to its lowest level since August 2023.

In April, the Caixin China Manufacturing PMI sub-indexes mostly showed a decrease. Among them, the production index slightly declined within the expansion range, the new orders index dropped to a seven-month low but still expanding, indicating that supply continues to outperform demand. Due to the impact of equivalent tariffs, the new export orders index plummeted to the lowest level since August 2023, significantly below the boom-bust line. The production operation expectation index dropped to a new low since the fourth quarter of 2024 within the expansion range, also the third lowest since records began in April 2012, showing the increasing concern of the industry about the global trade outlook. The employment index fell back into the contraction range after a brief expansion last month. Companies are using more inventory for production and sales, with the raw material inventory index falling below the boom-bust line, while the finished goods inventory index slightly rose within the contraction range. Manufacturing prices remain depressed, with the raw material purchase price index staying in the contraction range for two consecutive months, with a slight narrowing of the decline, while the factory gate price index remained flat within the contraction range.