China manufacturing slump continues

manufacturing sector has achieved its worst monthly result in a year, according
to HSBC.

China’s flash
HSBC/Markit Purchasing Managers’ Index fell from a result of 49.6 last month to
46.2 in April.

Any result
under 50 indicates contraction. The HSBC PMI is weighted towards smaller,
privately-owned firms, differing from the official PMI’s focus on larger,
state-owned enterprises.

After a
brief rebound in February, the last two months have been sub-50 overall.

The result
reflects weak local demand, with exports actually edging back into growth, from
48.5 to 50.6, the ABC and others point out.

“Despite the recent property easing
measures as well as strong bank lending supporting infrastructure investment,
domestic demand decelerated further,”
said HSBC greater China economist Julia Wang.

The output sub-index fell to 46.8 from 47.3.

The overall result was consistent with predictions
made by economists polled by Reuters.