Well-known Chinese financial news site Caixin Media recently released its official August numbers for the Chinese manufacturing PMI (Purchasing Managers Index), which was formerly known as the HSBC PMI. The August Manufacturing PMI dropped to 47.3. Both total new orders and new export orders declined. Manufacturers are reducing procurement of materials while customer demand is going down. Employment in August also continued its decline. Caixin Think Tank Chief Economist He Fan suggested that macroeconomic adjustments need to continue and that structural reform must accelerate.
In the meantime, well-known Chinese news site Sina reported on the government’s official PMI numbers released by the National Bureau of Statistics, showed that August Manufacturing PMI was 49.7. This is the lowest government PMI in three years. Normally the government PMI stays above 50. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Sources: Caixin, September 1, 2015
Sina, September 1, 2015