Well-known Chinese news site Sina Finance recently reported that the newly released HSBC April Chinese Manufacturing PMI (Purchasing Managers Index) number remains low, at 48.1. This key indicator has remained below 50 for four consecutive months. Both “new export orders” and the “employment rate” have dropped significantly. Qu Hongbin, the HSBC Chief Economist for the China Region, commented that the domestic demand level recovered slightly but still remains low. He expressed the belief that the new numbers demonstrate that the manufacturing sector as well as the whole Chinese economy are still slowing down and that more economic stimulation policies are needed. 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: Sina Finance, May 5, 2014