CHINA'S APRIL FACTORY ACTIVITY LIKELY EXPANDED AT SLOWER SPEED

China's manufacturing activity in April likely expanded at a slower pace compared to the previous month. According to the median forecast of 33 economists, the official purchasing managers' index (PMI) is expected to have slipped to 50.3 in April from 50.8 in March. It's worth noting that the 50-point mark separates growth from contraction in the PMI readings. The data, which will be released by the National Bureau of Statistics (NBS) on Tuesday, comes after China's economy grew faster than expected in the first quarter, offering some relief to officials.

However, March indicators revealed that domestic demand remains fragile. Analysts attribute this fragility to the ongoing property downturn, which continues to impact local governments' finances and household confidence. Furthermore, high-frequency indicators such as steel demand have shown muted growth in April, according to analysts at Goldman Sachs, indicating potential challenges in sustaining manufacturing momentum.

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