Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for June. It reflected the sharpest deterioration in operating conditions in four months amid economic weakness at home and abroad, with the index at 48.6. 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 total new orders decreased in June, driven by the seventh straight monthly decline in new export sales. At the same time, companies continued to reduce staffing for the 32nd successive month. Overall, economic conditions in the second quarter were considerably weaker than in the first quarter. Caixin expressed its belief that the government must strengthen its proactive fiscal policy while continuing to follow prudent monetary policy. 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, July 1, 2016