April saw China’s manufacturing sector slow unexpectedly, suggesting fragile economy.
BBC News reports that China’s Purchasing Managers’ Index (PMI), used to measure manufacturing activity, fell from 50.9 to 50.6 in March, with a sub-index of export orders also falling amid a weak global demand.
While China has relied on its manufacturing and export sector to drive economic growth, the country has seen growth in these areas drop recently as demand from the US and the Eurozone decreases, with 2012 seeing the growth rate in China drop to its lowest levels in 13 years despite the country attempting to encourage expansion in key sectors such as manufacturing.
China’s economy did expand by an annual rate of 7.7 percent in the first quarter of 2013, but slightly less than the previous quarter’s rate of 7.9 percent; and analysts have warned that the growth could slow further in the coming quarters as export markets continue to suffer economic problems.
Zhang Liqun, an economist at the Development Research Centre in Beijing, said: “The dip in April PMI shows that the foundation for China’s economic recovery is still not solid […] We must work to stabilise domestic demand and make our economic recovery more sustainable.”