Beijing (AsiaNews/Agencies) - Growth continues to decline in China because of lower world demand but especially because of the government's failure to boost domestic markets. In March, the Purchasing Manager's Index (PMI) fell to 48.1 from 49.6 in February, the fifth monthly fall, from HSBC Holdings Plc and Markit Economics report.
The PMI is a key indicator of manufacturing activity and a reading below 50 shows it is contracting. The data comes just days after China said it expected a growth of 7.5 per cent in 2012, the lowest target since 2004.
"External demand remained in contraction territory, but the decline was at a slower pace, implying that there are no improvements in the demand outlook. More worryingly, employment recorded a new low since March 2009, suggesting slowing manufacturing production was hindering enterprises' hiring desire," HSBC chief China economist Qu Hongbin said.