TEHRAN, Apr 30 - Factory activity in China expanded for a second straight month in April but at a much slower pace than expected, an official survey showed on Tuesday, suggesting the economy is still struggling for traction despite a flurry of support measures.
TEHRAN, Young Journalists Club (YJC) -The unexpected loss of momentum at the start of the second quarter followed upbeat data in March which had raised hopes among global investors that the world’s second-largest economy was getting back on firmer footing.
A private business survey on Tuesday also pointed to a loss of momentum, confounding expectations for a pick-up, with factories starting to shed jobs again after adding staff in March for the first time in years.
The weak manufacturing readings, along with softer construction growth, could stoke debate over how much more stimulus China needs to generate a sustainable recovery, without risking a rapid jump in debt.
The official Purchasing Managers’ Index (PMI) for manufacturing fell to 50.1 in April from March’s reading of 50.5, which was the first expansion in four months, data from the statistics bureau showed.
It hovered just above the neutral 50-point mark which separates expansion from contraction on a monthly basis. Analysts surveyed by Reuters had forecast the PMI to match March’s 50.5.
Source: Reuters
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