CHINA'S manufacturing activity growth may have slowed to a two-month low in April, a survey showed this morning.
This comes amid a weaker-than-expected performance from the world's second-largest economy.
The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest available indicator of China's industrial sector's vitality, fell to 50.5 in April.
In March it stood at 51.6.
However, April still is likely to become the sixth consecutive month that the index, slanted towards private and export-oriented firms, points to expansion.
A reading above 50 indicates expansion.
Qu Hongbin, chief economist for China and co-head of Asian Economic Research at HSBC Holdings Plc, said China's manufacturing still managed to expand modestly in April, although the index came in at a two-month low.
"But the activity advanced at a much slower pace, while new export orders contracted again after a temporary rebound in March, suggesting external demand for China's exports remains weak," Qu said.
Qu noted China is expected to respond strongly to sustain economic recovery by increasing efforts to boost domestic investment and consumption in the coming months.
Chinese officials said the country will continue its current policies.
Zhou Xiaochuan, the central bank governor, said over the weekend that China's economic growth was "reasonable" in the first quarter, as the country sacrifices growth to make structural reforms.
Zhou said a prudent monetary policy stance will be maintained to control inflation.
China's gross domestic product grew 7.7 percent from a year earlier in the first three months, missing market expectations and slowing from 7.9 percent in the final quarter of last year.
The surprisingly weak performance has triggered calls for the tightening policies to be lifted, especially when inflation eased to 2.1 percent in March from February's 10-month high of 3.2 percent.