Amidst slower expansion in Chinese manufacturing, the concerns revolving around the economic recovery in the second largest economy of the world have risen lately. The preliminary reading of 50.5 for Purchasing Managers’ Index (PMI) for the month is far below the final reading witnessed in the month of March, which had an index of 51.6. The observed preliminary reading of PMI for the month is also below the estimate made by the economists and market experts. In line with the seen bleak economic outlook, the Chinese stock market has also started to plummet and corporations from both the service and manufacturing sectors have already lowered their business forecasts for the year.

Despite the focus of Chinese government on domestic consumerism and investment, the economic expansion is not being achieved as expected. With weak growth in the manufacturing sectors, combined with plunging demand for industrial products at international market, resulting in declined exports, the road ahead is believed to be very challenging for the Chinese authorities. In line with the difficulties being faced by Chinese manufacturing sector, the employment conditions in the sector is also being affected. The observed negative employment situation in Chinese manufacturing sector is expected to affect the Chinese economic agenda of domestic consumerism and investment. With the Chinese authorities strongly focusing on domestic economy, especially in consumer sector, it seems that it is a high time for the Chinese central bank and government to accommodate economic stances to sustain and revive the economic agenda of growth via domestic economy focus, obviously, supported by the voluminous population that the country possesses.

On the other hand, with Euro zone struggling to recover from the prolonged economic recession, the Chinese export is being affected adversely. Deteriorating economic outlook of many European countries has been a major headache to Chinese manufacturing industry. Further, in spite of the improving US economy, the export to the US has not been colliding or corresponding with the economic recovery that the US is achieving.

Now, it’s up to the Chinese policy makers that how well they evolve with the growth friendly economic reforms and makes structural adjustments to its internal-external economic agendas.