Well-known Chinese news site Sina recently reported that HSBC/Markit jointly released the final Chinese Manufacturing PMI (Purchasing Managers Index) number for December, which is at a seven month low point at 49.6. According to Qu Hongbin, HSBC Chief Economist of the Grand China Region, domestic demand is on the decline, which has caused the number of new orders to shrink. This also confirms that the manufacturing industry is getting weaker. Qu suggested that the government may need to relax its currency policies again in the next few months. The unemployment sub-index showed an increase in unemployment, which may indicate that manufacturing companies are not hiring. 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: Sina, December 31, 2014