Latest data indicated that Chinese manufacturers started the second quarter with a further slowdown in production and new business growth. Employment across the sector meanwhile declined at the fastest pace since the start of the year and input buying rose only slightly. At the same time, optimism towards the 12-month outlook was the weakest seen in 2017 so far. Cost pressures continued to ease from the peaks seen at the end of last year, and contributed to only a modest rise in prices charged.

The seasonally adjusted Purchasing Managers' Index - a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy - registered 50.3 in April, down from 51.2 in March to signal only a marginal improvement in overall operating conditions. Moreover, the latest upturn in the health of the sector was the weakest seen since last September.

Slower increases in output and new orders were key factors weighing on the headline index reading in April. Production growth softened for the second month running and rose only marginally overall. Total new business followed a similar trend, and rose at weakest pace since last September.