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HSBC’s PMI – an indicator of industrial activity – shows that China’s factories are moving toward stabilization. Although not yet expanding, the Index rose from 48.1 in March to 49.1 in April and sits just shy of the 50 mark, which indicates growth in the sector.
While the uptick signals accelerated manufacturing, analysts still forecast a downturn in GDP, which slowed to 8.1% in the first quarter – in line with Beijing’s own target of 7.5%.