China Manufacturing Expands at Weaker Pace After Economy Slows

Bloomberg, (1/5) -- China’s manufacturing expanded at a weaker pace in April after economic growth unexpectedly slowed in the first quarter, a survey of companies indicated.

The Purchasing Managers’ Index was at 50.6, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compared with the 50.7 median forecast of 31 analysts in a Bloomberg News survey and a March reading of 50.9.

Chinese stocks fell to a four-month low before the national holiday that ends today on concern that a slowdown will drag on earnings. Growth risks include weakness in export demand, property-market overheating, a surge in so-called shadow banking and the damping of consumption by President Xi Jinping’s campaign to rein in official spending.

Japanese and South Korean industrial output was less than estimates in March and Taiwan’s first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies, reports showed yesterday.