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China May flash HSBC PMI shrinks for third mth
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China May flash HSBC PMI shrinks for third mth
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Publish time:
25
th
May, 2015
Source:
www.cnchemicals.com
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China’s flash HSBC/Markit Purchasing Managers' Index (PMI) contracted for the third consecutive month at 49.1 in May, up from 48.9 in April, suggesting China’s economic conditions are still deteriorating.Output sub-index was 48.4 in May, down from 50.0 in April, hitting a 13-month low, pointing to a further deterioration in operation conditions in May.New orders rebounded 0.6 from April in May, signaling improved demand, albeit with slower rate.The new export orders fell 0.5 from April, which was mainly due to climbing exchange rate.Softer client demand, both at home and abroad, along with further job cuts indicated that the sector may find it difficult to expand, at least in the near-term, as companies tempered production plans in line with weaker demand conditions.Meanwhile, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required, said Annabel Fiddes, economist at Markit.
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