China’s manufacturing expanded for a fifth month in April & reduced pressure on policy makers for a further monetary easing. China’s statistics bureau and logistics federation said, the Purchasing Managers’ Index rose to 53.3 from 53.1 in March. The pick-up in the PMI indicates a further expansion in the manufacturing sector, although it was slightly below market expectations of 53.6 & that China may be strengthening from the slowest pace of growth in almost three years, reached last quarter.
The manufacturing output sub-index rose to 57.2 from 55.2 in March. Although new export orders edged up to 52.2 from 51.9 in March, the sub-index for all new orders slipped to 54.5 from 55.1, implying that domestic new orders remained weak.
China’s GDP expanded 8.1% in the first three months of 2012 from 8.9% in the previous three months — the fifth consecutive quarter of slowdown in the world’s second-largest economy, as authorities cracked down on property speculation and exports were hurt by Europe’s debt crisis. The pace will slow to 7.5% to 8.5% this year and next, as a euro-area recession curbs exports.
While large-scale manufacturers continue to report growth, small firms remain in contraction, the statistics bureau said. The tight credit conditions have disproportionately hit smaller and private companies.
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