China’s economic momentum continues to slow. Factory activity shrank again in March according to the latest survey of company purchasing managers.
It was the fifth straight monthly decline and new orders sank to a four-month low with export demand still sluggish.
However analysts said the figures may have been skewed by their focus on small and medium sized companies as surveys of bigger firms have been more upbeat.
Indeed, the government’s official purchasing manager’s index, which focuses mostly on big companies, has painted a different picture of China’s economy. In February it was at its highest since September as survey respondents said there had been an increase in new export orders.