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China Manufacturing Slips Back Into Contraction

  • Written by Syndicated Publisher No Comments Comments
    May 24, 2013

    The HSBC Flash China Manufacturing PMI™ shows China Manufacturing Slips Back Into Contraction.

     Key Points
    • Flash China Manufacturing PMI™ at 49.6 (50.4 in April). Seven-month low.
    • Flash China Manufacturing Output Index at 51.0 (51.1 in April). Three-month low.

    click on chart for sharper image

    Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: “The cooling manufacturing activities in May reflected slower domestic demand and ongoing external headwinds. A sequential slowdown is likely in the middle of 2Q, casting downside risk to China’s fragile growth recovery.Moreover, the further signs of labour market slackness call for more policy support. Beijing still has fiscal ammunition to do so.

    Comment on the Comment

    Economic illiterates call for more “policy support” month after month. Such “support” is about to wreck Japan and the fools do not see it.
    Read more at http://globaleconomicanalysis.blogspot.com/2013/05/china-manufacturing-slips-back-into.html#Gzz4tkQEUhW5ryl9.99

    Images: Flickr (licence attribution)

    About The Author

    Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.  Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

    You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education.  Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.

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