The Flash China Manufacturing PMI came in weaker than expected this evening. This is all consistent with the weaker GDP readings and declining commodity prices we’ve seen recently. China looks like an increasingly fragile economy in a global economy that already looks very fragile.
Here’s more via Markit:
- Flash China Manufacturing PMI™ at 50.5 (51.6 in March). Two-month low.
- Flash China Manufacturing Output Index at 51.1 (53.0 in March). Two-month low.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
“The HSBC Flash China Manufacturing PMI came in at a two-month low, but still managed to expand modestly in April, albeit at a much slower pace. However, new export orders contracted after a temporary rebound in March, suggesting external demand for China’s exporters remains weak. Weaker overall demand has also started to weigh on employment in the manufacturing sector. Beijing is expected to respond
strongly to sustain the economic recovery by increasing efforts to boost domestic investment and consumption in the coming months.”