China's manufacturing sector deteriorated more than originally thought in April, according to the final reading of the HSBC Markit 'flash' PMI.
The index now comes in at 48.9 for the month, versus an original reading of 49.2 and versus expectations that it would only end up at 49.4. The reading is the lowest in twelve months.
A reading above 50 indicates the manufacturing sector is expanding. China's economy grew at a 7 per cent year-on-year pace in the first quarter, the slowest rate of growth in six years. Chinese policymakers are now taking of the 'new normal' - a new period of slower growth, after the economy's dramatic expansion over the previous two decades.
China's manufacturing PMI reading for April was a nudge ahead of expectations, and crucially over the point which separates growth in the sector from contraction.
The country's official manufacturing purchasing managers' index was 50.1 in April, slightly ahead of expectations of 50. It was also the same level recorded in March. The services PMI came in at 53.4, slightly down from 53.7 in March.
China's economy, which has enjoyed some of the fastest growth rates in the world in the past two decades, is now slowing and policymakers recently said it will target economic growth of "around 7 per cent" this year — the slowest expansion in a quarter century. Data from January and February indicated the manufacturing sector contracted slightly.
