China's April PMI declines amid deflation worries

Shanghai

China's factory activity contracted at its fastest pace in a year in April, a private survey showed, suggesting that economic conditions are still deteriorating despite increasingly aggressive policy easing by the central bank.

The flash HSBC/Markit Purchasing Managers' Index (PMI) fell to 49.2 in April, below the 50-point level that separates growth in activity from a contraction on a monthly basis.

After a brief rebound in February, the index has now been back in negative territory for two consecutive months. Ec…