China manufacturing PMI falls slightly

Date: Thursday 21 Jun 2012

-Flash China manufacturing PMI at 48.1, a 7-month low.
-Flash China manufacturing Output Index at 49.1 (49.7 in May)

The Chinese manufacturing sector purchasing managers´ index for the month of June compiled by Markit fell to 48.1 in June, from 48.4 in the month before, reaching a seven-month low.

Despite the above quite a few observers believe that the Asian giant´s economy will bottom-out in the current quarter.

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

“China’s manufacturing sector continued to slow in June, though the pace of slowdown seems to be slowing. With external headwinds remaining strong, exports are likely to decelerate in the coming months. The sharp fall of prices and moderation of new orders suggest weak domestic demand, posing destocking pressures for Chinese manufacturers. All will likely weigh on the jobs market. As such, we expect more decisive policy stimulus to reverse the growth slowdown.”

AB

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