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Chinese factory activity declines again

2014-04-23 3 Dailymotion

Factory activity in China shrank in April for the fourth straight month.<br /><br />The HSBC/Markit flash Purchasing Managers Index – which is based on surveys of thousands of companies – showed continued contraction. <br /><br />The pace of decline did ease though due to government moves to arrest the slowdown.<br /><br />Analysts said they are seeing initial signs of stabilisation in China’s economy.<br /><br />But they believe the government needs to do more in the way of stimulus measures to stop the economy slowing too much.<br /><br />That is because structural reforms in China are putting additional pressure on manufacturing activity.<br /><br />The PMI survey showed contractions in new orders and output moderated somewhat, though employment decreased at a faster rate and new export orders slipped after a pick-up in March, suggesting that the external environment remains difficult for Chinese firms.<br /><br />Signs of a slowdown in the first quarter had been evident in a series of economic indicators, prompting the government to unveil a series of measures to promote growth, although it has ruled out major stimulus.<br /><br />It has also said that its main focus will be on job creation, and that it did not matter if growth in 2014 came in a little below the official target of 7.5 percent.<br /><br />The country’s top economic planning body reiterated the message on Wednesday, saying that the economy will be fine without any heavy stimulus.<br /><br />with Reuters

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