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The HSBC Flash China Manufacturing PMI™ shows China Manufacturing Slips Back Into Contraction.
Key PointsComment on the Comment
- 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.
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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."
Economic illiterates call for more "policy support" month after month. Such "support" is about to wreck Japan and the fools do not see it.
Mike "Mish" Shedlock