Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for December 2015, which was 48.2. The Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The new Caixin PMI indicated that the Chinese manufacturing industry has been declining for ten consecutive months. The index showed weakened foreign demand. New export orders shrank, which impacted the overall new business volume for the month. Further analysis demonstrated that domestic demand was declining as well. In December, employers in manufacturing continued to reduce headcounts. In the meantime, manufacturers remained conservative in their procurement activities. However, data showed a lowered average cost across the industry even though the inventory level had a slight increase. 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, January 1, 2016
http://pmi.caixin.com/2016-01-04/100895398.html