The PMI index in industry of China in April has grown worse than expected

The purchasing managers ‘ index (PMI) in the industrial sector of China in April amounted to 50.1 points, showing growth for the second month in a row, said on Sunday the National Bureau of statistics of China. But the result was worse than expected, writes Reuters.

Against the background of optimistic indicators in March, the analysts interviewed by the Agency, expected in April China PMI will rise to 50.4 points. But in the end the figure was slightly above the level of 50 points.

In March, the PMI of China amounted to 50.2 points, having exceeded forecasts of analysts, who had expected the seventh month in a row. Then the experts polled by Reuters had expected China PMI 49.3 points, Bloomberg analysts predicted 49.4 points.

Analysts are concerned that appeared in March, signs of improvement in the economy can be largely due to the fact that companies and local government departments are increasing their debt, writes Reuters. The five largest banks of China in late April reported that in the first quarter of 2016, the volume of bad loans have increased by 53.2 billion yuan ($of 8.21 billion).

The PMI is based on a survey of managers of major companies, their assessment of the situation in the economy and prospects of business development. The excess of the PMI at 50 points means economic growth. A PMI below 50 indicates economic decline.