China Manufacturing PMI Declines at Quickest Pace Since Last August

The HSBC Flash China Manufacturing PMI shows China Manufacturing PMI Declines at Quickest Pace Since Last August.

Key points

• Flash China Manufacturing PMI™ at 47.7 (48.2 in June). Eleven-month low.
• Flash China Manufacturing Output Index at 48.2 (48.6 in June). Nine-month low.

PMI, Production, Exports



Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:

“The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking. This adds more pressure on the labour market. As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilise growth.”

Fine Tuning Needed?

Regarding Hongbin Qu's comment that "China needs to introduce additional fine-tuning measures to stabilise growth".

Mish says "please be serious".

China is supposedly growing at 7-8%. Such growth is not sustainable with or without "additional fine tuning".

Belief in central planners runs high. Such belief is foolish.

We do not need fine tuning, we need to eliminate fine tuners.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com