China's factory growth slows in April amid tariff impact
China's manufacturing sector lost momentum in April as the pace of expansion slowed to its weakest since January, weighed down by declining export orders and ongoing tariff-related disruptions.
China's manufacturing growth slowed in April, with the PMI falling to 50.4 amid weaker export demand and tariff-related disruptions. New export orders declined, output eased, and firms resumed job cuts. Despite slower input price deflation, manufacturers continued cutting selling prices, marking a fifth straight month of falling output charges.
The Caixin Purchasing Managers' Index (PMI) fell to 50.4 in April from 51.2 in March, though it remained above the neutral 50.0 threshold for the seventh consecutive month, signalling continued albeit modest growth.
New export orders recorded their first decline in three months, often linked to the adverse effects of increased US tariffs. This drag on external demand led to a more subdued rise in total new orders—marking the slowest pace of growth in seven months.
In response, output growth eased, supported largely by firms fulfilling backlogged orders, which in turn declined for the first time since September last year, according to a release from S&P Global Ratings.
With demand softening, manufacturers resumed job shedding and scaled back both input purchases and inventory levels. Business sentiment weakened, reaching its third-lowest level since data collection began in April 2012, driven by heightened concerns over trade uncertainty.
Despite a slight lengthening in supplier delivery times due to supply-side constraints, subdued demand kept input costs under pressure. Although the rate of input price deflation eased, Chinese manufacturers continued to pass on cost savings to customers, leading to a fifth straight monthly drop in output charges. Export prices also fell for a third consecutive month.
'As the market outlook is overshadowed, both business and consumer confidence are subdued, making it harder to boost domestic demand. The ripple effects of the ongoing China-US tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should be wellprepared, with action taken sooner rather than later,' Dr Wang Zhe, senior economist at Caixin Insight Group, said, commenting on the China General Manufacturing PMI data.
Fibre2Fashion News Desk (HU)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25 minutes ago
- Time of India
China approves some exports of rare earths ahead of US talks
Beijing says it granted approval to some applications for the export of rare earths, a move that could ease tensions before trade negotiations between the US and China next week. The Chinese commerce ministry confirmed the approval of the applications without specifying which countries or industries were covered, even as it noted growing demand for the minerals in robotics and electric vehicles. The ministry will continue to review and approve compliant export applications, according to a statement on Saturday. The confirmation comes days after the US and Chinese presidents spoke, following which Donald Trump said that there "should no longer be any questions respecting the complexity of Rare Earth products." Delegations from Beijing and Washington are scheduled to meet in the UK to conduct trade negotiations on Monday. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Three Oxon Hill Banks Are Paying Record High Interest Rates - See the List SavingsPro Undo China granted temporary export licenses to rare-earth suppliers of the top three US automakers, Reuters reported on Friday. The commerce ministry also said earlier Saturday it will speed up approvals for qualified rare earth exporters to Europe. Trump's comment came one day after a rare call with Xi aimed at resolving trade tensions that have been brewing over the topic for weeks. Live Events At that time, Trump said there had been "a very positive conclusion" to the talks, adding that "there should no longer be any questions respecting the complexity of Rare Earth products." "We're very far advanced on the China deal," Trump told reporters on Friday. The countries struck an agreement on May 12 in Geneva, Switzerland, to roll back for 90 days most of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. Financial markets that had worried about trade disruptions rallied on the news.
Time of India
an hour ago
- Time of India
Palantir CEO Alex Karp predicts U.S.-China AI race will have one winner as GOP slams Trump's data deal
Palantir Technologies CEO Alex Karp has warned that the US-China AI race will likely have only one winner, urging Western countries to act fast to stay competitive. In a recent interview with CNBC, Karp highlighted the serious risks and benefits of AI, stressing that innovation and national security go hand-in-hand. He also addressed political criticism about Palantir's federal contracts and denied surveillance allegations. Despite recent stock dips, Palantir's value surged 435% over the past year. With billions at stake and global power dynamics shifting, Karp's message is clear—the AI race is on, and the West must lead. Tired of too many ads? Remove Ads Why does Alex Karp believe the U.S.-China AI race will have only one winner? Is the West falling behind in AI innovation? Tired of too many ads? Remove Ads What's the controversy surrounding Palantir's government work? How much government work has Palantir secured under Trump? How has Palantir's stock performed in the last year? What's next for Palantir and U.S. leadership in AI? Tired of too many ads? Remove Ads FAQs: Palantir Technologies Inc. (NASDAQ: PLTR) CEO Alex Karp has issued a strong warning about the ongoing artificial intelligence race between the United States and China. Speaking on CNBC's 'Squawk on the Street' Thursday, Karp stated bluntly that the AI arms race 'will have one winner,' and he urged Western countries to act quickly or risk falling behind. While he highlighted the benefits of AI, he also underscored its risks, warning that failing to innovate responsibly could put democratic nations at a disadvantage. His comments come amid political criticism and a dip in Palantir's emphasized that the global competition in artificial intelligence is not just about technology—it's about values, power, and national security. According to Karp, 'either you win or you lose in this game.' He made it clear that the AI race isn't like traditional markets where multiple players can thrive; instead, there will likely be one dominant power, and he believes it's crucial that Western democracies lead that credited American corporate culture for fostering rapid innovation, saying that U.S. companies are uniquely positioned to adapt quickly and push tech boundaries. 'No other economy has corporate leaders as adaptable and tech-savvy while remaining deeply grounded in industry expertise,' he warning wasn't just for the U.S. government—it was a message for all Western allies. He urged countries in Europe and beyond to learn from America's aggressive innovation approach. He expressed concern that without similar urgency and investment, other democratic nations could lose ground in AI development, making the global balance of power increasingly tilted in China's urgency he stressed reflects a broader concern among policymakers and tech leaders about China's rapid advancements in AI, especially in military and surveillance Karp made headlines with his AI warnings, Palantir is also facing political heat. Some Republican lawmakers are criticizing the Trump administration's expanding deals with the company, citing concerns over surveillance and data privacy. There are reports alleging that Palantir helped gather information on Americans during Trump's directly addressed these claims, calling them 'ridiculous.' He denied that Palantir surveilled U.S. citizens to aid the federal government, insisting that the company operates within strict legal and ethical the pushback from GOP lawmakers has had a market impact. On Thursday, PLTR stock fell by 7.77%, closing at $119.91, following reports of criticism over the company's government the controversy, Palantir has significantly expanded its footprint in the federal government. Since Donald Trump took office, the company has secured over $113 million in new or extended contracts, not including a massive $795 million deal with the Department of Defense. These contracts span across various government departments, including defense, intelligence, and public growing role in national security, and its work with the U.S. military, puts it at the center of both innovation and political recent criticism and Thursday's stock dip, Palantir has seen a 435% surge in its stock value over the past 12 months. Investors have largely backed the company's strong positioning in AI and defense technologies, as well as its growing list of public sector and private sector Karp's comments—and the political tension around federal contracts—signal that volatility may continue. As the AI race intensifies, Palantir's future may depend just as much on public trust as it does on government countries like China investing billions into AI, Karp's call for the West to 'keep up' isn't just a company pitch—it's a broader plea for urgency. Whether it's through policy changes, public-private partnerships, or stronger investment in AI research, the next few years could decide who leads the global tech the AI landscape evolves, Palantir Technologies remains at the center of the debate—balancing innovation, ethics, politics, and national security. Karp's stark message is clear: the AI race isn't slowing down, and only the most prepared nation will win.A1: He believes AI dominance will go to one nation, urging the West to move faster.A2: No, CEO Alex Karp denied all surveillance claims linked to the Trump administration.
Economic Times
an hour ago
- Economic Times
Palantir CEO Alex Karp predicts U.S.-China AI race will have one winner as GOP slams Trump's data deal
Palantir Technologies CEO Alex Karp has warned that the US-China AI race will likely have only one winner, urging Western countries to act fast to stay competitive. In a recent interview with CNBC, Karp highlighted the serious risks and benefits of AI, stressing that innovation and national security go hand-in-hand. He also addressed political criticism about Palantir's federal contracts and denied surveillance allegations. Despite recent stock dips, Palantir's value surged 435% over the past year. With billions at stake and global power dynamics shifting, Karp's message is clear—the AI race is on, and the West must lead. Tired of too many ads? Remove Ads Why does Alex Karp believe the U.S.-China AI race will have only one winner? Is the West falling behind in AI innovation? Tired of too many ads? Remove Ads What's the controversy surrounding Palantir's government work? How much government work has Palantir secured under Trump? How has Palantir's stock performed in the last year? What's next for Palantir and U.S. leadership in AI? Tired of too many ads? Remove Ads FAQs: Palantir Technologies Inc. (NASDAQ: PLTR) CEO Alex Karp has issued a strong warning about the ongoing artificial intelligence race between the United States and China. Speaking on CNBC's 'Squawk on the Street' Thursday, Karp stated bluntly that the AI arms race 'will have one winner,' and he urged Western countries to act quickly or risk falling behind. While he highlighted the benefits of AI, he also underscored its risks, warning that failing to innovate responsibly could put democratic nations at a disadvantage. His comments come amid political criticism and a dip in Palantir's emphasized that the global competition in artificial intelligence is not just about technology—it's about values, power, and national security. According to Karp, 'either you win or you lose in this game.' He made it clear that the AI race isn't like traditional markets where multiple players can thrive; instead, there will likely be one dominant power, and he believes it's crucial that Western democracies lead that credited American corporate culture for fostering rapid innovation, saying that U.S. companies are uniquely positioned to adapt quickly and push tech boundaries. 'No other economy has corporate leaders as adaptable and tech-savvy while remaining deeply grounded in industry expertise,' he warning wasn't just for the U.S. government—it was a message for all Western allies. He urged countries in Europe and beyond to learn from America's aggressive innovation approach. He expressed concern that without similar urgency and investment, other democratic nations could lose ground in AI development, making the global balance of power increasingly tilted in China's urgency he stressed reflects a broader concern among policymakers and tech leaders about China's rapid advancements in AI, especially in military and surveillance Karp made headlines with his AI warnings, Palantir is also facing political heat. Some Republican lawmakers are criticizing the Trump administration's expanding deals with the company, citing concerns over surveillance and data privacy. There are reports alleging that Palantir helped gather information on Americans during Trump's directly addressed these claims, calling them 'ridiculous.' He denied that Palantir surveilled U.S. citizens to aid the federal government, insisting that the company operates within strict legal and ethical the pushback from GOP lawmakers has had a market impact. On Thursday, PLTR stock fell by 7.77%, closing at $119.91, following reports of criticism over the company's government the controversy, Palantir has significantly expanded its footprint in the federal government. Since Donald Trump took office, the company has secured over $113 million in new or extended contracts, not including a massive $795 million deal with the Department of Defense. These contracts span across various government departments, including defense, intelligence, and public growing role in national security, and its work with the U.S. military, puts it at the center of both innovation and political recent criticism and Thursday's stock dip, Palantir has seen a 435% surge in its stock value over the past 12 months. Investors have largely backed the company's strong positioning in AI and defense technologies, as well as its growing list of public sector and private sector Karp's comments—and the political tension around federal contracts—signal that volatility may continue. As the AI race intensifies, Palantir's future may depend just as much on public trust as it does on government countries like China investing billions into AI, Karp's call for the West to 'keep up' isn't just a company pitch—it's a broader plea for urgency. Whether it's through policy changes, public-private partnerships, or stronger investment in AI research, the next few years could decide who leads the global tech the AI landscape evolves, Palantir Technologies remains at the center of the debate—balancing innovation, ethics, politics, and national security. Karp's stark message is clear: the AI race isn't slowing down, and only the most prepared nation will win.A1: He believes AI dominance will go to one nation, urging the West to move faster.A2: No, CEO Alex Karp denied all surveillance claims linked to the Trump administration.
