China's factory output up but export orders dive

Activity at mainland factories rose marginally last month but export orders fell sharply, a government survey showed, adding to questions about whether the world's second-largest economy is stabilising after its first-quarter slowdown.

The data came after Premier Li Keqiang pledged on Wednesday to step up support for the trade sector. This was in addition to measures taken over the past month on concerns that the economy may be losing momentum more quickly than expected.

The purchasing managers' index rose to 50.4 last month from March's 50.3, the National Bureau of Statistics said, one of the first indicators of how the economy started the second quarter.

At just above the 50 level that separates growth from contraction, it indicated a slight pickup in activity for the month, although it was below expectations.

Zhang Liqun, an economist at the Development Research Centre, which helps compile the PMI, said the index pointed to stabilising economic growth ahead, but others disagreed.

"We do not believe the economy has passed a turning point," said Zhang Zhiwei, a China economist at Nomura.

Zhang Zhiwei expected annual economic growth to slow to 7.1 per cent in the second quarter from an 18-month low of 7.4 per cent in the first, adding the risks were to the downside.