Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for November, which was 48.6. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The Caixin PMI has been below 50 for nine consecutive months. According to Caixin Think Tank Chief Economist He Fan, the index saw a slight increase from last month, but the total new business sub-index under the Caixin Manufacturing PMI is still showing a continued decline. Further analysis demonstrated that a weak domestic demand was the primary cause of the shrinking new business number. In November, the employment level in manufacturing continued to decrease. Manufacturers are reducing their procurement activities as well. In the meantime, the National Bureau of Statistics released the government’s official Manufacturing PMI number: 49.6. This number is typically higher than its Caixin counterpart. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Caixin, December 1, 2015