Manufacturing activities in China declined further in the month of April, according to a private survey conducted by Caixin magazine, a leading business and finance magazine in China.      

The Purchasing Managers Index (PMI) dropped to 49.4 points in April from the previous month's 49.7 points. The drop was mainly due to sluggish demand for Chinese manufactured goods.

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The report noted that job cuts and downsizing was witnessed across the companies on account of weakness in manufacturing activities. However, job cut rates in April were far less than the month of February.

Taking into account latest PMI data, Caixin's report specifically stated that recovery of Chinese economy still has a long way to go.          

"The fluctuations indicate the economy lacks a solid foundation for recovery and is still in the process of bottoming out. The government needs to keep a close watch on the risk of a further economic downturn," said He Fan, Caixin's chief economist. 

Caixin's PMI date comes just two days after the National Bureau of Statistics (NBS) released the non-manufacturing PMI data which also declined. 

Non-manufacturing PMI marginally contracted in April to 53.5 from 53.8 points in March.

The weakness in April's manufacturing and non manufacturing PMI contradicts the huge stimulus package announced by the Chinese government. It s under increasing pressure from international bodies and local citizens to take desperate measures to revive the slowing economy.

The ongoing slowdown in Chinese economy has been widely described as China's worst economic crises in more than two decades. 

Tagschina, Chinese Manufacturing, China's Purchasing Managerial Index (PMI), Chinese Economy