Wang Zhe, senior economist at Caixin Intelligence Tank: The manufacturing boom continued to improve in April, and the expansion of supply and demand accelerated

On April 30th, the prosperity of the manufacturing industry continued to improve in April. The expansion of supply and demand accelerated, and the performance of external demand was excellent. However, employment still did not improve significantly. The price level remained low, especially the sales-side prices were sluggish, and the profitability of enterprises increased. The economic growth rate in the first quarter of 2024 exceeded market expectations, and the economy started well. It was consistent with Caixin China's manufacturing PMI being higher than the line of prosperity and decline for six consecutive months. From the perspective of different categories of products, consumer goods are no longer thriving. In April, the production and sales of investment goods were booming. Signs of the transmission of prosperity from the downstream to the middle and upper reaches have emerged. He said that the unfavorable factors of the current economic development are still weaker than expected, which in turn leads to increased employment pressure and increased deflation risk. The policy level should also continue to maintain consistency and continuity, promote the implementation of previous policies as soon as possible, and gradually improve market expectations by maintaining the current economic recovery trend.