China's economy is still slowing, according to purchasing managers' index (PMI) reports for April. The PMI report showed that the Chinese manufacturing sector contracted in April from a year earlier, while consumer spending fell by 0.1%. “A steady flow of solid economic data will only reinforce expectations the Chinese authorities can afford to focus their efforts on reducing financial imbalances in the economy rather than supporting the growth rate of the economy itself,” said Victoria Clarke, an economist at Investec. The PMI for factory activity was at a six-month low of 51.2 and the PMI for services was 54.0, down from 55.1 in March.
China's economy is still slowing, according to purchasing managers' index (PMI) reports for April. Activity in both the manufacturing and services sectors slowed over the month, as the Beijing government tried to curb the property and credit boom. “A steady flow of solid economic data will only reinforce expectations the Chinese authorities can afford to focus their efforts on reducing financial imbalances in the economy rather than supporting the growth rate of the economy itself,” said Victoria Clarke, an economist at Investec. The PMI for factory activity was at a six-month low of 51.2 and the PMI for services was 54.0, down from 55.1 in March.