HSBC/Markit China manufacturing PMI shows weakness in September29 September, 2012, 10:52. Posted by Zarathustra
HSBC/Markit China manufacturing PMI has been revised slightly upward from the flash estimate of 47.8 to 47.9, improving from 47.6 in August.
Output fell to a 10-month low of 47.3 from 48.2 in August, pointing to sharp contraction in manufacturing output. New export orders continued to decline, with the latest reading at 44.9, lowest since March 2009, indicating extremely weak external demand as the Euro Crisis continues to linger on. Meanwhile, new orders improved slightly to 47.3 from 46.1, and destocking has led to sharp decline of finished goods inventory from 54.0 to 50.2. The improvement in new orders and destocking left the new orders minus inventory measures improved from –7.9 to –2.9.
Employment index improved from 47.6 to 48.4, but remains below 50, indicating contraction. Meanwhile, input and output prices indices rebound from very low level, but remains well 50, highlighting the lack of inflationary pressure.
Source: HSBC/Markit, Bloomberg
The latest PMI points to continued weakness in manufacturing. There are possible signs of slowing down of the pace of contraction, but far from any robust recovery.