BEIJING (Reuters) – The activity of Chinese industries suffered in April its biggest drop in a year when collapsing new orders showed Monday a private report that backs who promote new incentives for monetary policy to shore up the ailing economy.
The Purchasing Managers’ Index HSBC / Markit (PMI) fell to 48.9 in April, the lowest level since April 2014, compared to the record of 49.6 in March, amid weakening demand amid persistent inflationary pressures.
The figure was weaker than the preliminary reading of 49.2 and is below the level of 50 points separates growth from contraction.
The overall new orders sub-index fell to 48.7 in April, the most severe contraction in a year, although new export orders showed tentative signs of improvement.
The output prices and inputs declined for the ninth month in April while manufacturing employment fell for the eighteenth month.
“China’s manufacturing sector had a weak start to the second quarter, with total new business falling at the fastest rate in a year while output stagnated,” said Annabel Fiddes, economist Markit.
“PMI data indicate that might need more stimulus measures to ensure that the economy does not fall below the annual rate of 7% seen in the first quarter,” he added.
An official report released Friday showed that China’s factories struggled to grow in April as domestic and export demand remained weak, reinforcing expectations that Beijing will soon announce new measures to support the slowing economy.
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