More bad news out of China this evening as the Flash PMI from Markit and HSBC shows further signs of deterioration:
Flash China Manufacturing PMI™ at 48.1 (48.4 in May). 7-month low.
Flash China Manufacturing Output Index at 49.1 (49.7 in May). 3-month low.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
“China’s manufacturing sector continued to slow in June, though the pace of slowdown seems to be slowing. With external headwinds remaining strong, exports are likely to decelerate in the coming months. The sharp fall of prices and moderation of new orders suggest weak domestic demand, posing destocking pressures for Chinese manufacturers. All will likely weigh on the jobs market. As such, we expect more decisive policy stimulus to reverse the growth slowdown.”