Early PMI reading suggests China factory activity contracting again

A preliminary Purchasing Manager’s Index (PMI) reading for factory activity in China shrank this month, continuing a stint below the 50-point marker delineating growth and contraction that began in March, Reuters reported, citing the flash HSBC/Markit PMI. The fall to 49.2 comes in 0.4 points below last month’s official PMI reading, though a decline in employment seen in March appears to have moderated this month. New orders also declined, and output prices fell at an accelerated rate, suggesting intensifying deflationary pressures.