China's manufacturing growth slows in April
Growth in China's manufacturing sector slowed in April, a survey by
HSBC has indicated, adding to concerns about the country's economic
recovery.
The preliminary reading of HSBC's Purchasing Managers Index (PMI)
fell to 50.5, from 51.6 in March. A reading above 50 indicates
expansion. A drop in new export orders was blamed for the decline, a
sign of weak global demand. Last year, China's economy grew at its
slowest pace in 13 years.
"New export orders contracted after a temporary rebound in March,
suggesting external demand for China's exporters remains weak," said
China chief economist at HSBC, Qu Hongbin in a statement.
Asian shares fell after the release of the data, with the main index
in Shanghai falling 1.4%. Banks have cut their full-year growth
forecasts for China after an unexpected slowdown in the first quarter.
Growth in gross domestic product for the first three months of the year
declined to an annual rate of 7.7%, compared with 7.9% in the previous
three months.
The World Bank and private sector banks, said they expected growth to
slow to 8% this year, though that is still high by global standards. The
government has said it will take steps to try to support the economy.
"Beijing is expected to respond strongly to sustain the economic
recovery by increasing efforts to boost domestic investment and
consumption in the coming month,'' HSBC's Qu said.
Analysts said it was unlikely Beijing would introduce another massive
stimulus package like it did after the global financial crisis in 2008.
BBC
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