Well-known Chinese news site Sohu recently reported that China’s National Bureau of Statistics just released its official February numbers for the manufacturing industry sector. The manufacturing PMI dropped to 49.2, which is the lowest since March 2016. Some experts suggested that the February Chinese New Year was the cause. However, the PMI decline this year is worse than it was for the Chinese New Year months in the past three years. This is also the first time since February 2009 that the official manufacturing PMI has gone below 50. The latest numbers showed very low new orders on the import side. New export orders also reached the lowest since March 2009. Almost all analysts pointed out that the new PMI numbers do reflect a continued pressure on the Chinese economy. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Sohu, February 28, 2019