China Manufacturing Slumps on US Levies, Spurring Stimulus Calls

China’s factory activity slipped into the worst contraction since December 2023, revealing early damage from Donald Trump’s tariffs and prompting calls for a speedy policy boost.

The official manufacturing purchasing managers’ index fell more than expected to 49 from 50.5 in March, the National Bureau of Statistics said Wednesday. The non-manufacturing measure showed activity in construction and services grew less than forecast.

The indicators offer a gloomy first official look at the health of China’s economy after the Trump administration imposed sweeping tariffs of 145% on Chinese products, a level expected to hurt a sector that contributed to ...