Flash China PMI shows factory output weakened again in March

[BEIJING] China's manufacturing industry weakened for a fifth straight month, according to a preliminary measure for March released yesterday, deepening concern the nation will miss its 7.5 per cent growth target this year.

The Purchasing Managers' Index from HSBC Holdings and Markit Economics dropped to 48.1, compared with the 48.7 median estimate of 22 analysts surveyed by Bloomberg News and last month's final 48.5 figure. Numbers above 50 signal expansion.

Chinese stocks rebounded from initial losses on speculation that weakening growth will prompt policy makers to reconsider their aversion to broad stimulus measures. Leaders face a balancing act of reining in credit expansion that's fuelled the risk of loans going bad, while averting an economic slump that raises the odds of higher unemployment.