Chinese industry shrinks with a more rapid pace than expected

The Chinese industry represents less than expected in April, marking the most significant attenuation of business activity for the last year. PMI index, calculated by HSBC, was revised from 49.2 to 48.9 points, below forecasts of strategists correction to 49.4 and below the March result of 49.6.

The indicator reached the lowest value since April 2014, when amounted to 48.1 points, well below 50 points, marking expansion.

Today's report by HSBC outlines a grim picture of the government's PMI index for the Chinese industry, which was published on Friday and retains its value from March to 50.1 points.

According to analysts, the difference is due to the fact that the study by HSBC is giving more importance  to the smaller export companies. This disappointing performance is most probably due to the decrease of domestic consumption, while new business from abroad is showing signs of improvement.

"The Chinese manufacturing sector began poorly the second quarter, new orders decrease with significant pace in a year, and production is stagnating." - Said HSBC's chief economist for China Hongbin Kew.