China's manufacturing sector down in 6 consecutive months

Manufacturing firms in April reported the sharpest staff reduction in 37 months.

Here's from HSBC:

After adjusting for seasonal factors, the HSBC Purchasing  Managers’ Index  posted 49.3 in  April, up from 48.3 in March. That indicated a sixth  successive month-on-month worsening of manufacturing  sector operating conditions in China. The index was nonetheless consistent with a marginal rate of deterioration.  Manufacturing output decreased for a second month  running in April, although the rate of contraction was  marginal. Moreover, the latest decrease was slower than in  March. Where a decline in factory output was recorded,  panellists commented on fewer intakes of new business.

There were also reports of adverse market conditions. Goods producers continued to report underlying demand weakness, with incoming new business falling at a marginal rate in April. In addition, the rate of decline in new business was the slowest in the current six-month period of reduction. In contrast, new export orders rose in April, albeit at a  fractional rate.

Growth of work awaiting completion was recorded for the second month running in April, in spite of a further reduction in new orders. However, the rate of backlog accumulation was slight. Meanwhile, companies continued to reduce their staff numbers in April. Although modest, the rate of job shedding was the sharpest in 37 months. Manufacturers commented on employee retirements, resignations and the need to streamline workforce numbers in response to lower output requirements.