China's factory activity softened in April, official data showed today, in the latest sign that the world's second-largest economy remains on uneven footing despite a raft of government stimulus measures.
The Purchasing Managers' Index (PMI), a key gauge of factory conditions, came in at 50.1 for the month, down from 50.5 in March, the National Bureau of Statistics said.
The reading is below analyst forecasts but remains above the 50 level separating expansion from contraction.
Analysts said that the latest survey data disappoint hopes for a further recovery. The official PMIs suggest that (the second quarter) got off to a weaker start and reinforce the view that there are still some downside risks to near-term activity, they added.
Growth in Chinese factory activity from last month and new orders softened, while raw material inventories declined.
Tepid global demand and a trade war with Washington that has seen tariffs slapped on more than $360 billion in goods has weighed on China's manufacturing sector.
The new export and import orders sub-index rose from March, but remained in contraction territory.
Beijing has announced a raft of stimulus to cushion the impact from its cooling economy, with spending on roads, railways and other big-ticket infrastructure projects picking up early this year, and tax cuts worth 2 trillion yuan ($297 billion) kicking in this month.
Chinese economic growth in the first quarter stabilised at 6.4%.
Data from independent data provider Caixin released today also showed growth in China's factory activity softening from last month.
The figures come as top US trade negotiators arrive in Beijing today for the latest round of negotiations aimed at resolving the thorny issues riling relations between the world's top two economies.
