Growth of manufacturing in China slows during April

<p>New data has shown manufacturing slowed in China last month.</p>

The release of new data has shown the manufacturing industry in China slowed during the course of last month.

It was revealed by the statistics that Purchasing Managers' Index (PMI), which is viewed by investors to be a key measure of manufacturing activity, dropped to 50.6, from 50.9 in March.

"The dip in April PMI shows that the foundation for China's economic recovery is still not solid," said Zhang Liqun, an economist at the Development Research Centre, which is a top government think tank in Beijing.

Growth in the Chinese economy has slowed down in the last few weeks, with data showing the Asian nation's economy expanded at an annual rate of 7.7 per cent in the first three months of the year, which is down from 7.9 per cent in the previous quarter.

The Nikkei recently (April 23rd) dropped on the back of weak manufacturing data from China and it seems likely these new figures could have a similar impact on the index.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.