China's factory activity in April shrinks for 4th month

[BEIJING] China's factory activity shrank for the fourth straight month in April - signalling economic weakness into the second quarter - a preliminary survey showed yesterday, although the pace of decline eased, helped by policy steps to arrest the slowdown.

Analysts see initial signs of stabilisation in the economy due to the government's targeted measures to underpin growth, but believe that more policy support may be needed as structural reforms put additional pressures on activity.

The HSBC/Markit flash Purchasing Managers Index (PMI) for April rose to 48.3 from March's final reading of 48, still below the 50 line separating expansion from contraction.