Growth in China’s manufacturing sector slowed in April, a survey by HSBC showed, 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 Qu Hongbin, China chief economist at HSBC in a statement.
Asian shares were lower on the data, with the main index in Shanghai falling 1.4%.
Response expected
Banks have cut their full-year growth forecasts for China after an unexpected slowdown in the first quarter.
Gross domestic product for the first three months of the year declined to 7.7%, compared to 7.9% in the previous three months.
The World Bank, as well as private sector banks, said they expected growth to slow to 8% this year, though that is still high by global standards.
The government had said it will take steps to try and 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 Mr Qu said.
Analysts said it was unlikely Beijing would introduce another massive stimulus package like it did after the global financial crisis in 2008.
