2014.04.2300:00:00UTC+00China HSBC Manufacturing PMI Rises To 48.3

An index monitoring manufacturing activity in China posted a score of 48.3 in April, the latest survey from HSBC and Markit Economics revealed on Wednesday.

That was in line with forecasts and up from 48.0 in March - although the index remains below the boom-or-bust score of 50 that separates expansion in a sector from contraction.

The manufacturing output index saw a score of 48.0 in April, the survey showed - up from 47.2 in March and touching a two-month high.

"Domestic demand showed mild improvement and deflationary pressures eased, but downside risks to growth are still evident as both new export orders and employment contracted," said Hongbin Qu, Chief Economist, China & Co- Head of Asian Economic Research at HSBC.

Among the other individual components of the survey, new orders, new export orders, input prices, output prices and quantity of purchases all showed improvement - although they remained in contraction.

Employment, backlogs of work and stocks of purchase contracted at an accelerated rate, while new export orders shifted from expansion to contraction.

Stocks of finished goods remained in expansion, albeit at a slower pace, while suppliers' delivery times lengthened.

"The State Council released new measures to support growth and employment after the release of Q1 GDP. Whilst initial impact will likely be limited, they signaled readiness to do more if necessary. We think more measures may be unveiled in the coming months and the PBoC will keep sufficient liquidity," he added.

The HSBC China Report on Manufacturing is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 420 manufacturing companies.