CHINA, EU, FACTORY ACTIVITY

Gloom in factories

Friday, April 24, 2015

Chinese factory activity contracted to its lowest level in a year this month while euro zone private sector growth was weaker than forecast on slowing new orders in the region, surveys showed.
The flash HSBC/Markit purchasing managers' index in China fell to 49.2, below the 50-point level that separates growth from contraction, suggesting economic conditions are still deteriorating despite increasingly aggressive policy easing by Beijing.After a brief rebound in February, the index has been back in negative territory for two months.The sharp fall in employment seen in March moderated and export orders rose for the first time in three months, but most news was bad. New orders declined further to a one-year low of 49.2 from March's final reading of 49.8.Input and output prices fell at faster rates, pointing to intensifying deflationary pressures.Meanwhile, Markit's composite flash purchasing managers' index for the euro zone, seen as a good growth indicator, fell to 53.5, dragged down largely by faltering activity in France.REUTERS