China's factory activity expanded for a second consecutive month in April. While the pace of growth slowed, the expansion beat expectations.
The official purchasing managers' index reading reached 50.3, surpassing the 50.1 expected by economists.
This growth occurred despite disruptions to supply chains and rising input costs caused by the Iran war. The results suggest that surging energy prices stemming from the Middle East conflict have placed limited pressure on factory activity.
Regarding shipments, global demand linked to AI has helped buoy exports, although export growth had weakened in March.