China’s manufacturing and services sectors saw slower expansion last month, hinting at a loss of momentum for the economy. While solid first-quarter GDP growth lessened the immediate need for stimulus, challenges persist. Manufacturing PMI dropped to 50.4, with new export orders growing slower and employment shrinking. Services also grew at a slower pace, with sectors like catering and property showing contraction. Analysts expect more stimulus, but foresee challenges from tepid external demand and trade barriers. Domestically, concerns linger over a property downturn and rising local government debt. Despite strong first-quarter growth, weaknesses in retail sales and industrial profits underline the difficulty of sparking broad demand revival. China's ambitious GDP target for 2024 further highlights the challenges ahead.