Chinese factory activity slumps to lowest for a year as demand slows

An index complied by HSBC shows the manufacturing sector contracted in April, with layoffs and a cutback in procurement indicating further challenges ahead

China's manufacturing activity recorded its worst contraction in a year in April, a survey showed on Monday, as subdued domestic demand weighed on growth in the world's second-largest economy.

An index of factory activity compiled by HSBC came in at 48.9, the weakest since 48.1 in the same month last year, it said in a statement. A reading below 50 indicates recession.