China’s economic recovery remains patchy, with latest indicators pointing to a contraction in manufacturing, while consumers splurge over the holidays and the housing market continues to rebound.
Purchasing managers’ indexes released Sunday showed an unexpected decline in factory activity in April, weighed down by weaker global demand for Chinese exports. Chinese consumers, though, continued to spend on travel and shopping.
The data suggest China’s recovery remains lopsided, with the production side of the economy lagging the rebound in consumption. That underscores Chinese leaders’ cautious growth outlook at a meeting Friday and the need for more policy stimulus.