Econintersect: HSBC’s (Hong Kong Shanghai Bank Corp, NYSE:HBC) Flash China Purchasing Managers Index, a gauge of manufacturing activity slanted more towards private and export-oriented firms, fell in June to 48.1, compared with 48.4 in May, HSBC Holdings PLC announced today. A reading of 50 or higher generally indicates activity is expanding. This was the eighth consecutive month below 50 and the lowest reading in seven months. The index was dragged down by poor export orders, which index declined to 45.9, the lowest level since March 2009 at the depth of The Great Recession.
There are two PMI surveys in China. Besides the HSBC numbers reported above, there is also an official PMI run by the government which focuses more on large state owned companies. The most recent value of that index was reported 31 May 2012 at 50.4, down from much higher numbers earlier in the year.
- HSBC’s PMI Slumps, sending shares lower at midday (Ye Zhen, Shanghai Daily, 21 June 2012)
- China Cuts Key Interest Rates, Combats Fraud, Bad Loans and Manufacturing Slowdown (GEI News, 7 June 2012)