China manufacturing activity growth slows in April

China-FactoryGrowth 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 Qu Hongbin, China chief economist at HSBC in a statement.

Asian shares fell after the release of 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.

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, 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 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 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.

 

Source : BBC News

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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