Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for April, which at 49.4 is lower than March (49.7). Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. All sub-indexes of April manufacturing PMI declined. The index showed that operating conditions across China’s manufacturing sector continued to deteriorate in April, albeit marginally. Total new orders stagnated and new export work fell for the fifth month in a row. Weak market conditions and muted client demand contributed to a further solid decline in employee headcount. Manufacturing product prices indicated that inflationary pressures intensified across the sector in April, with material costs rising at the quickest pace since January 2013, which in turn underpinned the quickest rise in sales charges since October 2011. 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, May 3, 2016