China's flash PMI drops to 50.5 in April

It was more than what analysts expected.

According to BBVA, the Flash PMI estimate fell by more-than-expected in April to 50.5 (consensus: 51.5) from 51.6 in March (the Flash estimate covers 85-90% of the total sample). 

The export order index was especially disappointing, declining to 48.6 from 50.5 in March.

Here's more from BBVA:

Although still above the 50-expansion threshold, coming after a disappointing Q1 GDP outturn (7.7% y/y) today’s estimate adds to pessimism about China’s growth momentum amidst rising domestic financial fragilities that could constrain the authorities’ willingness to implement further stimulus.

Nevertheless, we expect growth to improve over the coming quarters in line with our full-year 8.0% GDP growth projection for 2013 as policies remain supportive and as the external environment gradually picks up.

In the meantime, we await the release of the official NBS PMI on May 1 (BBVA: 50.5; prior 50.9), which covers a larger sample size of larger and more domestically-oriented firms.