China’s factories grow less than expected, raising recovery doubts

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Reuters Sunday 1 May 2016

China’s manufacturing sector expanded less than expected in April, raising doubts about the sustainability of a recent pick-up in the world’s second-largest economy.

The official purchasing managers’ index (PMI) was 50.1 in April, easing from March’s 50.2 and barely above the 50-point mark that separates expansion in activity from contraction.

Analysts worry that recent signs of improvement may be largely driven by companies and local governments taking on more debt, putting the chances of a stable recovery at risk.

China’s five biggest banks reported last week that their bad loans had increased by 53.2bn yuan ($8.21 billion) in the first quarter.

Source story here

 

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