The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) came in at 48.3 in April, up from 48.0 in March. This is a Two-month high.
"Domestic demand showed mild improvement and deflationary pressures
eased, but downside risks to growth are still evident as both new export orders and employment contracted," says Hongbin Qu, chief China economist at HSBC.
"The State Council released new measures to support growth and employment after the release of the first quarter GDP. Whilst initial impact will likely be limited, they signaled readiness to do more if necessary. We think more measures may be unveiled in the coming months and the People’s Bank of China will keep sufficient liquidity," he adds.