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An employee is working on a Mercedes-Benz car assembly line in Beijing on August 31, 2015.
Kim Kyung-Hoon | Reuters
China's manufacturing sector grew more slowly than expected in April, according to data released Tuesday.
The Caixin / Markit Group Purchasing Managers' Index for April was 50.2, which is missing from the 51 predicted by analysts in a Reuters poll. The reading for March was 50.8.
The private PMI survey took place after the publication by China's National Bureau of Statistics of the official manufacturing PMI for April, which stood at 50.1. Analysts polled by Reuters expected the indicator to remain at 50.5 as the previous month.
PMI values above 50 indicate expansion, while those below this signal contraction.
The Australian dollar lost about 0.2% against the US dollar following the release of the two PMI data, reversing previous gains. The Australian dollar is often seen as an indirect indicator of China's economic outlook. China is Australia's largest trading partner, according to the Australian Department of Foreign Affairs and Trade.
Tommy Xie, head of research on Greater China at Singaporean bank OCBC, said the "slightly more moderate" official data from the PMI can be attributed to an increase in stocks the previous month.
"Overall, more than 50 years is still a decent figure," Xie told CNBC's "Street Signs" before Caixin / Markit data was released.
The PMI is a survey of companies on the operating environment. These data provide a first glimpse of what is happening in an economy, as they are usually among the top economic indicators published each month.
For China, the PMI is one of the economic indicators on which investors around the world are watching closely for signs of unrest due to domestic barriers and ongoing trade negotiations between the United States and China.
– This is the latest news. Please check again for updates.
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