BEIJING -- The latest Caixin General China Manufacturing Purchasing Managers' Index (PMI), an indicator of manufacturing activity, edged down to 49.4 in April, suggesting the economic recovery is yet to firm up.
The private survey, conducted by financial information service provider Markit and sponsored by financial media group Caixin, produced a reading on May 3 fractionally down from 49.7 in March and below the market forecast of 49.8, signaling marginal deterioration in operating conditions.
A reading above 50 indicates expansion, while a reading below 50 represents contraction. The Caixin index has remained below the neutral 50 value for more than a year.
The survey found relatively weak market conditions and softer client demand had led firms to be cautious towards their production schedules, while new order books stagnated following a slight expansion in the previous month.
Meanwhile, weaker foreign demand continued to weigh on orders, with new export work falling for a fifth consecutive month.
Companies displayed cautious inventory policies in April, with stocks of finished goods and inputs both falling at faster rates.
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