Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for February 2016, at 48.0, which is lower than January. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator that financial institutions monitored globally. The February manufacturing PMI is now at the lowest point in five months. The index showed a decline in both manufacturing output and new orders. New export orders have been declining for three months. Most manufacturers expressed the belief that the domestic market is very weak. The February unemployment sub-index in manufacturing reached the lowest point since January 2009. In the meantime, the Chinese manufacturing PMI number that the National Bureau of Statistics reported reflected the same situation, at 49.0, which was the lowest since December 2011. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting the purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Caixin, March 1, 2016