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Also sprach Analyst > Economy > China > HSBC/Markit Flash China manufacturing PMI signals further contraction in June

HSBC/Markit Flash China manufacturing PMI signals further contraction in June

21 June, 2012, 11:25. Posted by

HSBC/Markit flash estimate of China manufacturing PMI for June continues to show weakness. Headline PMI fell from 48.4 in May to 48.1 in June’s initial estimate, a 7-month low.

New orders and new export orders are contracting at faster rates, while inventory of finished goods are expanding at a faster rate. This is not good.

The chart below shows the HSBC/Markit China PMI vs. the official PMI. Earlier this year, there has been a significant divergence between the two, and it appeared that HSBC/Markit PMI was closer to the reality than the official one. It will be interesting to see if the official PMI would come down further in June.

image

Source: NBS, HSBC/Markit

Meanwhile, this is how the internals of the PMI looks like. As said, this does not appear to be a good mix of internals you want.

image

Source: HSBC/Markit


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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.

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