(Beijing) – Business conditions for China's manufacturers continued to deteriorate in April, according to the monthly Caixin China Purchasing Managers' Index, which fell to 49.4 from 49.7 points in March.

All of the index's components lost ground month-on-month, with total manufacturing output slipping below the 50-point neutral level.

Total new orders stagnated in April and new export orders fell for the fifth month in a row.

Weak demand for Chinese manufactured goods contributed to a solid decline in overall staffing, with some companies downsizing and others choosing not to fill vacant positions.

Overall, the job-shedding rate in April was only marginally less dramatic than February's cuts, which were the worst in seven years.

Meanwhile, cost pressures throughout the manufacturing sector intensified, with the inflation rate hitting the highest level since January 2013.

Manufacturers raised their prices between March and April and the increase was the sharpest since October 2011.

The latest statistics suggest the Chinese economy is still slowing down, said He Fan, chief economist at Caixin Insight Group.

"These fluctuations indicate the economy lacks a solid foundation for recovery and is still in the process of bottoming out," said He. "The government has to keep a close watch on risks of a further economic downturn."

（From: Caixin Online)