China’s economic output missed expectations in April, due in part to the worldwide shortage of computer chips, the Wall Street Journal reported.
The country’s official purchasing managers index (PMI) in manufacturing slid from 51.9 in March to 51.1 last month; the service industry’s PMI drooped to 54.9 from March’s 56.3.
Readings above 50 indicate expansion; the higher the reading, the brighter the outlook.
TREND FORECAST: China was the world's only major economy to grow during 2020. While the new figures indicate that its momentum is slowing, we maintain our forecast for a strong 2021 Chinese Gross Domestic Product... in the 8 percent range.
As world economies reopen, product demand will increase. As we note in this Trends Journal, for example, while America’s trade deficit hit a record high, China’s trade surplus keeps rising. And the higher their trade surplus, the higher their GDP rises as much of the world buys Made-in-China.