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HSBC PMI Number for Chinese Manufacturing Remains Low

Well-known Chinese news site Sina recently reported that the June HSBC PMI (Purchasing Managers Index) number for the Chinese manufacturing industry remains low, at 49.4. The employment sub-index under the manufacturing PMI reached a six-year low (46.6). Despite the slight recovery of new orders and new export orders, the manufacturing industry continues to cut jobs. Also in the news, the Chinese Mainland’s new media company Caixin Media just announced that, starting August 1, Caixin Media will replace HSBC to sponsor the same PMI number, which has been managed and calculated by the British market study company Markit. Caixin confirmed that there will be no change in the data collection methodology or the formulas. The HSBC PMI is typically lower than the official PMI number that the Chinese government releases. 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, July 1, 2015