China’s flash PMI in August fell to a 9 month low of 47.8 with broad weakness in output, employment, prices and new orders. This obviously is not a huge vote of confidence for the direction of the global economy. Markit has more details on the report:
- Flash China Manufacturing PMI™ at 47.8 (49.3 in July). 9-month low.
- Flash China Manufacturing Output Index at 47.9 (50.9 in July). 5-month low.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:
“Falling orders dragged down the August flash PMI to a nine-month low, suggesting Chinese producers are still struggling with strong global headwinds. To achieve the stated policy goal of stabilizing growth and the jobs market, Beijing must step up policy easing to lift infrastructure investment in the coming months.”