Manufacturing slows in China

Manufacturing activity in China showed continued expansion in April, albeit at a slowed pace, the Wall Street Journal reported. The HSBC China Manufacturing Purchasing Managers’ Index, a nationwide gauge of manufacturing activity, declined to 55.4 in April from 57.0 in March. The PMI reading still shows moderate manufacturing expansion, as April’s PMI reading is the 13th consecutive month in which the reading has been above 50, indicating expansion. While some analysts see the latest PMI readings as indication that Beijing’s policy tightening is beginning to cool the overheated economy, others feel it’s premature to declare a policy-induced slowdown. On Sunday, the China Federation of Logistics and Purchasing also reported that China’s official PMI rose to 55.7 in April from 55.1 in March, though a high reading suggests inflationary pressure could be on the rise.