Without warning, this April,
growth in China’s manufacturing sector unexpectedly slowed because new export
orders drop. This causes rise in doubts towards the strength of the economy
after a disappointing first quarter.
While analysts had expected the
April PMI to be 51.0 it the official purchasing managers’ index (PMI)fell to
50.6 in April from an 11-month high in March of 50.9.
A comparable turn down in a
preliminary HSBC PMI in the previous week reflected the recoil on the official
PMI, signifying China’s exports engine is encountering an opposite from the
euro zone recession and slow-moving growth in the United States.
Analysts said it will provide
support for the economy in the second quarter if China’s new government has
signaled it will step up infrastructure investment.
“Overall, my general feel is that
China is growing but slower than people expected say a month ago,” said Alvin
Pontoh, economist at TDSecurities in Singapore...
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