China Reports Unexpected Deflation In April

The non-manufacturing business activity index also declined, returning to a level below 52. This represents a 0.1% decrease from the 50.4 recorded in March. The report noted that a domestic semiconductor supplier is facing issues supplying products due to being based in the United States. This shift in focus from tariffs to semiconductor supply chains is expected to be a priority for Chinese authorities. China's manufacturing Purchasing Managers' Index (PMI) fell to 50.3 in April, representing a 0.7% decrease from March levels. The April manufacturing PMI was 50.3, down 0.1% from March's 50.4. High-tech manufacturing production in China is currently leading the sector, according to a report on the mainland economy. Data from the first quarter indicates that high-tech production is currently leading the manufacturing sector. Consumer prices in China fell by 0.02 percent between April 28 and May 4. Analyst Konstantin Asmolov noted this deflation is unexpected for the current time of year. The market has not yet reacted to these specific data points. A reaction may occur during the next regular trading session.