Xinhua reported in Hong Kong that HSBC released the latest PMI (Purchasing Managers Index) number for China’s manufacturing industry. The September PMI reached 47.9. This indicates that China has had a month-by-month manufacturing decline for 11 months in a row. The Manufacturing Output Index showed a 10-month low of 47.3. The New Export Orders Index dropped to 44.9, which meant a further decline from August’s figure. The inventory Index reached a 5-month low, which reflected the continuation of the inventory clean-up process. These numbers demonstrated a consistent decline in manufacturing activities. With the biggest decline of new orders in 42 months, the inventory level naturally dropped. HSBC’s Chief Economist of the Chinese Economy expected higher pressure from quantitative easing for the Chinese central government. PMI is an indicator of financial activity reflecting the purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Xinhua, September 29, 2012