Caixin: China’s January Manufacturing PMI Remains Low

Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for January 2016, which remained below 50, at 48.2. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The Caixin manufacturing PMI has remained below 50 for eleven consecutive months. The index showed that the domestic market is a weakening. New orders shrunk, which caused the manufacturers to reduce production for the month. However, internationally, new orders have increased slightly. In January, employers in manufacturing continued to reduce headcounts. In the meantime, the Chinese manufacturing PMI number reported by the National Bureau of Statistics was also below 50, at 49.7, which was the lowest number from the Bureau in three years. 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.