Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for May, which was 49.2, down 0.2 from April. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The PMI report showed that the health of China’s manufacturing sector continued to decline in May, with output and new orders both falling. At the same time, job shedding persisted across the sector, with the rate of reduction remaining close to February’s post-global financial crisis record. Weak demand conditions underpinned further falls in both purchasing activity and inventory holdings in May. The renewed fall in total new business placed with Chinese manufacturers in May is a big concern. Though fractional, it was the first reduction in new work for three months. 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, June 1, 2016