A gauge of China’s manufacturing activity fell to a 12-month low in April, suggest preliminary figures of a private sector survey, underscoring the need for more easing policies from the Chinese Government, analysts say.

The flash HSBC/Markit Purchasing Managers’ Index (PMI) declined to 49.2 this month, below the 50-point level that separates growth from contraction. It is also lower than the final reading of 49.6 in March.

Qu Hongbin, chief china economist at HSBC, said in a report on Thursday accompanying the result that the April PMI was “disappointing”.

Mr Qu said that with China facing downward pressure in the economy, he expected the central bank to cut the interest rate again either in this quarter or in the third quarter. The banks’ reserve requirement ratio – the amount of customer deposits and notes that the banks must hold as reserves – could also be slashed again by 1 percentage point in the second half of this year to spur the economy, Mr Qu added.

China’s central bank cut the ratio by 1 percentage point to 18.5 percent this month, the second such cut for this year.